Retirement is another stage of your life that you must prepare for before you take that final step.
There is a lot that can be gained in retirement; after 50+ years of labor, you finally have the time you need for family, travel, hobbies, or whatever lies in the next chapter of your life. But for everything you gain, you want to make sure that you don’t lose the things you value–like your benefits–that were part of your workplace employee benefits plan.
Before you retire, here are some questions you need to ask yourself.
- Is my employer required to offer workplace benefits in retirement?
The short answer is no, especially for private-sector employers. However, some good companies do provide options for those retiring or leaving a job. Before making plans to fund your own benefits, find out if your workplace offers full or partial portable retirement benefits.
- Can benefits be eliminated during retirement?
Even if you work for an employer who provides portable benefits, it’s important to remember that they aren’t legally obligated to continue your package throughout your retirement. Be sure to look closely at your conditions and bring up anything that may change down the road.
- Do I have to cash in my 401(k) immediately?
No! If you have more than $5,000 in your 401(k), then the plan administrator must continue to maintain it and you don’t have to take withdrawals until April 1st of the year you reach 70.5. Talk to a financial advisor about your best options if you want to stall taking out any money on your 401(k).