Things to do 1 year before retirement

Everyone will reach retirement age . So before retirement, what should you do to have the best life afterwards? Here are things to do 1 year before retirement .

Retirement is one of those milestones that seems so far away until it suddenly hits you right in the head. After decades of working and saving for retirement, you’re suddenly faced with actually retiring. Your final year before retirement can be fun, exciting—work issues are no longer a concern, you have lots of exciting plans for your upcoming free time—or downright terrifying. Either way, now is the time to take the necessary steps to make sure you’re ready for what retirement holds.

It's not just about getting your retirement accounts & investments ready. You should consider taking these five steps about a year from retirement—because they'll be harder to do later.

Things to do before retirement

• Make the most of your benefits (including vacation)
• Consider a Line of Credit/Refinancing
• Comprehensive health check
• Planning for retirement budget 

Make the most of your benefits (including vacation)

Your job offers benefits that are part of your total income. It's important to make sure you take full advantage of them, because they're yours.

Review your company’s policy on paid time off or vacation. Do they allow you to carry over or roll over days? If so, how many days do you have left unused? Will your company pay you those days in cash when you retire or forfeit them? If the latter, start planning how you can use them now. Having a little extra time off before you officially retire isn’t the worst thing ever, and it’s certainly better than having all that time or money go to waste.

In fact, you should review all of the benefits you receive through your employer to see which ones you should take advantage of before you retire and lose access to them. Everything from health and lifestyle plans, to tuition reimbursement, to employee discount programs should be used to their full value, because once you file the paperwork, they’re gone.

Consider a Line of Credit/Refinancing

If you have a big expense coming up, you should consider paying it off now, before you actually retire. That’s because refinancing your mortgage, opening a home equity line of credit (HELOC), or getting a home equity loan can be more difficult in retirement because you don’t have a steady paycheck, and banks sometimes have trouble getting their standard models to work. A HELOC can be inactive for years, so having one on hand means you have enough money to make major repairs or other projects in the future.

However, if you have not yet determined the purpose of using a HELOC, you do not need to do this.

Comprehensive health check

If you’re a year away from retirement, you’ve probably already figured out how you’ll get health insurance after you leave your job. But regardless of your plans, it’s a good idea to get a physical now, when you’re about a year away from retirement. The coverage you have through your employer may be better than your out-of-pocket coverage, so finding out you have a serious medical condition or need expensive surgery now could save you a lot of money than if you had to pay for it yourself. Even if that’s not the case, or you decide to postpone treatment for reasons other than financial, knowing that you might have to deal with something allows you to plan ahead rather than be caught flat-footed.

Planning for retirement budget

Have you budgeted for your retirement years? Well, the time to do it is while you're still working. You've worked out the numbers — income versus expenses — but you won't know if they're actually working until you live by them. While you still have a year left in your working life, try living on the income you expect from your retirement assets (including Social Security, if eligible). This isn't mandatory, since you'll still be working and may be spending money you don't need after retirement, but it will give you an idea of ​​how realistic your budget is. If you're miserable and struggling, you'll need to reframe your plan — and having the option to work a little longer is helpful. Even if you're sticking to your retirement date, you'll have time to find side hustles or make smart spending choices that work.