Credits:
Duration:
Retirement Checklist
Date published: Friday, March 27, 2009
NEA Member Benefits
- Pick a retirement date: Pick a date that maximizes retirement income (birthday or anniversary of service).
- Notify employer in advance, in writing: Ask your personnel or administrative department how much notice is needed for them to do retirement calculation and establish payment flow.
- Select retirement payment and survivor options from retirement
plan(s): There are usually several options available. These are important decisions and usually irrevocable once you begin retirement. - Plan for the conversion of medical and dental insurance after retirement: If you do not have coverage after retirement you will have to convert your current plans. Do NOT let coverage lapse.
- Schedule major medical and dental work to be done prior to retirement: There may be a waiting period for pre-existing conditions if you switch companies. Have the work done before you leave.
- Determine amounts due from Social Security (self and spouse): Personal employee benefit statement (PEBS) is available free. Call 1-800-772-1213 to request yours.
- Notify Social Security if 62 or older to begin payments (requires 4 months notice): As an educator, you may not be eligible for SSA (Colorado & Texas), but you may be eligible for up to 1/2 of your spouse's benefits.
- Sign up for Medicare (if 65).
- Make or update your will and your spouse's will: Both you and spouse should have separate wills and instructions in the event of serious illness.
- Review employer paid life insurance, which may be reduced upon retirement: Some term life benefits are drastically reduced at retirement.
- Calculate how much income will be needed in retirement each month: 70%-80% of preretirement income.
- Make a list of monthly retirement cash inflow from all sources: Consider pensions, 403(b)s, IRAs, 401(k)s, PT work, a business or sale of assets.
- Determine how any shortfall of monthly income will be generated from investments or savings.
- Discuss with accountant or financial advisor the best way to generate monthly income.
- Decide on the payment option for any tax-deferred annuity.
- Notify the company issuing the tax-deferred annuity of the chosen payment option.
- Recompute asset allocation investment plan for postretirement risk tolerance and life expectancy.
- Change investment mix to reflect revised asset allocation: Once you have determined the best asset mix, begin gradually shifting assets.
- Calculate the effect of part-time work on Social Security payments.
As of November, 2011, NEA Members have spent $22,525,036 through NEA Click & Save, and have collectively saved $6,157,372!
