5 Year Action Plan For Retirement

ira-plans-1Start with your current financial situation, specifically pay attention to how you can start to maximize your income and begin to reduce your expenses. For a lot of people, planning for retirement normally starts about 5 years ahead of schedule.


Below is a helpful guide on areas that you should focus on.

[It is important to note that this is to give you an idea only and should not be the only checklist used].

5 Years to Retirement Date

a] Meet with your pension provider and make sure to discuss the following:

    • Review you current pension plan account holdings.
    • Consolidate any other pension plans into one account.
    • Discuss the current rules and regulations regarding accessing your pension at retirement.
    • Determine the benefits of making additional voluntary contributions if needed.

b] Review your bank account[s], if you have multiples do you really need them all?

c] Review your investment account[s]; review the asset allocations and make sure the investment allocations match your time horizon.

d] Review your insurance policies [i.e. life, home, car], do they reflect current values?

e] Update your will or visit a lawyer and have a will created and filed.

f] Update your beneficiaries on anything that has a listed beneficiary i.e. life insurance, pensions etc.

g] If you still owe anything; mortgage, car loan, credit cards – time to pay those off.

h] Look at your cash flow. Can you decrease your expenses and increase your savings?

i] Determine where your retirement income is going to come from?

    • Pension
    • Rental collection
    • Social insurance
    • Investments

2 Years to Retirement Date

a] Review your risk allocation on your pension plan and start lowering the risk level.

b] Crunch numbers for retirement income vs. retirement expenses to ensure positive cash flow.

c] Consolidate your bank accounts to make sure you are streamlined.

d] Start consolidating your investment accounts to ensure a clear investment strategy.

e] If retiring overseas; make plans for your first initial trip to look at potential retirement locations.

f] All debt should be paid off with no further intention of borrowing.

g] Renovations to your house should be completed.

h] Review your current cash flow and determine changes you will make at retirement.

i] Determine options for long term care needs.

6 Months to Retirement

a] Request information on the various pension options upon retirement.

b] Obtain information on individual health insurance from local providers.

c] Request a copy of your Bermuda Social Insurance monthly benefits plan.

d] Adjust any immediate insurance needs.

e] Finalize annual or monthly retirement cash flow options.

f] Finalize retirement budget for expenses.

g] Review investment allocations for positive cash flow options.

h] If retiring abroad make decisions on accommodations – renting vs. ownership.

i] Inquire about long term care especially regarding the cost of treatment locally or abroad.

Retirement Day

a] Create your retirement folder with all your financial and insurance information.

b] Ensure you have a clear understanding of your retirement budget.

c] Plan for your retirement trip.

d] Have a retirement dinner with your family and friends to celebrate the next chapter.

e] If moving abroad, start packing.

– Carla Seely is the Vice President of Pension and Investments at Freisenbruch-Meyer, if you would like any further details please contact cseely@fmgroup.bm or call 441 297 8686