by Cathy Pelekais

Created on: May 22, 2008   Last Updated: May 29, 2008

I retired from the Federal Government last year after 34 years of employment. How long was I planning on retiring for the past 34 years. Retirement was one of the most important events in my life and I started to plan for my retirement the day that I started working.

I had seen from my parents and grandparents that they did not have a retirement plan and all that they were surviving off of was Social Security benefits. That was not going to be my course of action. I began to put money away the day I started to work, I felt that I did not have any money to begin with and if I put away a set amount each pay, it was as if I never had it at all. Today, many folks are afforded the opportunity to place pre taxed money directly into an IRA, many companies offer matching funds, so it is as if you are getting free money. Your are not only saving your dollars you don't have to pay taxes on the money and interest until after you retire.

Approximately five years prior to the date you wish to retire attend a pre retirement counseling seminar, the cost is minimal under $100, and many organizations will pay for the seminar, talk to your Human Resource Center to see if there are any planned, if not make the suggestion to your company. However if your organization or company does not offer a pre retirement seminar check with your local library or Community College there are always seminars being offered.

Get an estimate of what your retirement annuity will be, take into consideration that you may elect to have a survivor benefit to cover your spouse or eligible children. Check to assure that your health benefits carry over into your retirement years, if your company doesn't offer a health program, start hunting for one now.

Check your retirement plan, do you have a life insurance policy that your company pays for, if so will the coverage continue after you retire, check with your Human resources office to assure that you have coverage and what if any it will cost you when you retire.

Call the Social Security Administration on (800) 772-1213 to ask for SSA-7004- PC, Request for Earnings and Benefit Statement, to get a record of your earnings under Social Security and, if you will be eligible, an estimate of the payment you may receive.

Pay as much as you can possibly pay on your debts before you retire. If necessary consider getting a second mortgage to pay off your bills, the mortgage interest is tax deductible the interest on your personal credit cards is not.

Take a good hard look at your current budget, consider when you retire that the take home pay that you are getting now will be at least 20 to 40 percent less. Learn to live off a lesser amount now that you have an income, this will enable you to live off of less when you retire. The year before you retire cut back on your living expenses by at least twenty percent, if you can survive off of that amount of money you will be able to comfortable retire.

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