If your retirement days are right around the corner, you're probably checking the box on things you need to do before you stop working. You've probably already thought about your health insurance needs and factored in Social Security benefits.
But there are a few more items that you might want to add to your list to set yourself up for a stress-free retirement. We've jotted down two moves you might have overlooked.
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1. Put your bills on autopay
You may have more time during retirement, but that doesn't mean you want to blow it on licking stamps to pay upcoming bills. To free up some time, you can jot down all of your monthly bills and see which ones make sense to put on autopay.
For example, if you have fixed expenses, such as car payments, insurance, or rent that doesn't fluctuate from month to month, you might want to consider setting up autopay. You know exactly how much you need to pay for those bills, so you can make sure you have enough in your bank account to cover those expenses. The last thing you want to deal with are overdraft charges and return payment fees when you're on a fixed income.
However, you still want to keep tabs on your bills to make sure the right amount is deducted from your accounts every month. It's easy to miss billing mistakes when you are not monitoring your accounts.
You might want to consider setting up a specific account that is only used to pay for bills so you don't accidentally withdraw money that was needed for something else. For example, when you get Social Security benefits or any other income, you might want to have some of the funds allocated to a bill payment account and the remaining funds transferred to another account. If your income or expenses change during the year, you'll want to review your autopay accounts again to see if you need to make changes to your bill payment system.
2. Review your checking accounts
Speaking of accounts, you want to make sure the accounts you currently have are compatible with your retirement lifestyle. For example, if it's harder for you to meet your current minimum balance requirements while you're on a fixed income, you might want to search for other bank accounts.
To get the ball rolling, start researching the safest banks to trust with your money. Check if the banks offer some type of insurance, such as FDIC, that provides a standard insurance amount of $250,000 per account owner, per bank. If you end up with more than $250,000 in your bank account, you may want to put the extra funds in a second FDIC member bank to ensure all your funds are insured. You might also want to consider a brokerage account.
It may also make sense to open another bank account if you want to separate your everyday spending from bill payment or gain access to more perks that you don't currently have. Another checking account can give you access to more ATMs near your home or cash-back rewards on your debit card purchases. You may be able to rack up a few hundred dollars when you open a new account if you look into the best bank bouses and promotions that are currently offered. Before you open a new account, make sure you are aware of the fees and any account restrictions. It's also a good idea to opt out of paper statements if your bank charges for them.
Retirement can be overwhelming if you're always worried about how you're going to pay the bills and if the money in your bank account will be there when you need it. The more research and planning you can do now, the less stress you'll have later. If you can create a system that helps you better manage your finances now, you'll be able to live the retirement that you've always dreamed of.
