Planning to Retire in 2022? 15 Moves to Make Soon

The decision to retire is a big one -- and an exciting one. If you're gearing up to retire in 2022, here are some moves it pays to make in the next few months.

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As a general rule, it's a good idea to retire with 10 to 12 times your ending salary socked away in a retirement plan. Check your savings balance to see where you stand -- and to make sure you've accumulated enough money to end your career.

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When you check your retirement plan balance on screen, you might see a large number. But you'll need to see how much annual income that actually buys you. A $500,000 nest egg might seem impressive, but if you plan to withdraw from your savings at a rate of 4% per year, that's $20,000 of income. Granted, you'll probably have Social Security on top of that, but the key is to make sure you're really all set savings-wise before leaving the workforce for good.

The investments in your IRA or 401(k) should be appropriate given your retirement timeline. That means you shouldn't be too aggressively invested in stocks, since you'll be taking withdrawals from your savings shortly. See how your money is allocated and make changes if needed.

The upside of having a Roth IRA is that you won't be taxed on your withdrawals. You also won't be forced to take required minimum distributions once you turn 72, whereas all other tax-advantaged savings plans impose them. If you convert some of a traditional IRA to a Roth, you will have to pay taxes on that sum, but that will spare you from paying taxes once you're retired.

ALSO READ: 3 Best Ways to Invest for Retirement

Knowing what monthly income to expect from Social Security is a crucial step on the road to retirement. You can get an estimate of your monthly benefit by accessing your most recent earnings statement, which you can view on the Social Security Administration's website. If you're 60 or older, you also should've received that statement by mail.

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Just because you're planning to retire in 2022 doesn't mean that's the year you should claim Social Security. If you won't be reaching full retirement age, it could pay to wait, since filing before full retirement age will reduce your monthly benefit for life.

Many seniors are surprised to learn that many common income sources, like pensions and Social Security benefits, are subject to taxes. Take some time to understand what your tax burden might look like and consult an accountant to see about lowering it.

ALSO READ: Can You Retire a Millionaire Using Only a 401(k)?

Medicare eligibility begins at age 65, but you can enroll up to three months before the month of your 65th birthday. If you'll be retiring soon and losing your health coverage, it pays to sign up for Medicare if you're old enough. Otherwise, you'll need to figure out what you'll do for health insurance.

Medicare is loaded with rules, and knowing what services the program will and won't pay for will help you approach retirement with more confidence. Medicare won't cover the cost of dental care, for example, so when assessing your retirement savings, you'll need to factor in out-of-pocket medical expenses.

Original Medicare isn't your only choice for health coverage once you turn 65. You can also enroll in Medicare Advantage, an alternative to original Medicare that can sometimes offer more comprehensive coverage at less of a cost. It pays to see what Advantage plans are available where you live and what your coverage might look like under them.

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Just as it's important to have money in savings for emergencies during your working years, so too do you need an emergency fund for retirement. A good bet is to keep enough money in savings to cover three to six months of bills.

ALSO READ: 4 Ways to Grow $100,000 Into $1 Million of Retirement Savings

The state you retire in could impact your tax situation and your finances on a whole. It could also determine whether you're liable for state taxes on your Social Security benefits or not. Make a decision so you can plan thoroughly.

If you're not thrilled with your retirement savings balance but want to move forward with your plans to leave the workforce in 2022, it could pay to plan to take on a part-time job. Even if you don't need the money, working part-time could buy you more financial freedom and give you a way to stay busy. But working part-time could also impact your Social Security benefits if you haven't yet reached full retirement age, so you'll need to consider your options carefully.

The idea of having your days to yourself may seem appealing -- until you actually retire and find yourself bored and restless. Before leaving the workforce, make sure you have a plan for how you'll spend your newfound free time. That could involve a mix of working a few hours a week, volunteering, seeing the grandkids, and taking classes or joining a club at your local community center.

ALSO READ: 3 Rules to Keep in Mind if You're Retiring Early

If you have a good relationship with your employer and the fact that you intend to retire in 2022 is well known, then there's no reason not to help make that transition as smooth as possible. Volunteer to help train your potential replacement and pass key information on to your peers. Not only will your manager appreciate it, but it'll buy you some goodwill so that if money gets tight in retirement and you need to go back to work, your old boss may be willing to take you on as a consultant.

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You may be looking forward to retirement, and understandably so. And if you make these essential moves before leaving your career behind, you'll put yourself in an even better position to enjoy that new period of life to the fullest.

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