Planning for the 4 Phases of Retirement: Late Retirement

In Part 1, we looked at the potential hurdles of early retirement. Part 2 took us through Early Retirement, where we emphasized the importance of monitoring your cash flow. In Part 3, middle retirement, we examined how things tend to settle down a bit as you become comfortable with the mental and financial challenges. That brings us to the final part of this series: Late Retirement. As you head into your 80s, the number of decisions related to your finances tend to wind down. Still, there are a few things to keep in mind.

Key considerations:

· If you need income, consider income from your home. Reverse mortgages can seem confusing, but our guide from earlier this year will help you consider this option, alongside possibly relocating to a cheaper residence.

· Have a plan for if your health worsens. Even if you’re in great health now, that’s no guarantee of future great health. Always consider what will happen if things take a turn for the worse. This includes the health of a spouse or partner, of course. Keep a short list of assisted living facilities you’d be interested in.

· Consider a power of attorney. You can and should establish a financial power of attorney and a healthcare power of attorney to handle financial and medical decisions in case you are no longer able to make them.

Just because you’re entering your late retirement years doesn’t mean the end is nigh. You may have decades of a great life to look forward to. It will be much more rewarding if you’re well-prepared for what happens if your health begins to decline or after you pass on.