The Retirement Journey: 5 Essential Steps for a Confident Transition

Charting the Course to Retirement with OneDigital

Are you beginning to picture your retirement? As we transition into this next chapter, we find ourselves at a financial and psychological crossroads. Retirement isn't just a destination; it's a journey that requires careful navigation over 30+ years. At OneDigital, we have developed a comprehensive webinar series that identifies these critical areas forming the foundation of successful retirement planning. 

As a CERTIFIED FINANCIAL PLANNER® professional, my goal is to eliminate financial stress and provide clarity to your plan. In individual conversations and group presentations, I cover giving yourself a paycheck in retirement, achieving financial goals, protecting your legacy, and any issue unique to each person.

—Keith Huber, Vice President, Financial Advisor, OneDigital

 

To guide you through your retirement journey, here are five essential steps towards a secure future: 

Step 1: Retirement Income Plan

For 30 or more years, you've been able to count on a paycheck. Now comes the challenge: How do you turn your hard-earned savings into a reliable stream of income? 

Your retirement income strategy needs to address multiple sources working together. Social Security forms the foundation, providing a moderate income. Your 401(k), 403(b), and IRA accounts represent your accumulated savings that need to be strategically withdrawn.  

We need an investment strategy based around your income needs and a plan to take that income tax-efficiently.  The key is creating a diversified approach that doesn't rely too heavily on any single source while ensuring your money lasts throughout retirement. 

Step 2: Understanding Medicare

Determining how far Medicare Parts A, B, and D get you, and identifying where you might need more coverage, is crucial for protecting both your health and wealth. 

Medicare Part A covers hospital stays and is typically premium-free. Part B covers outpatient services and doctor visits but requires monthly premiums. Part D provides prescription drug coverage through private plans. However, traditional Medicare doesn't cover everything. Notable gaps include long-term care, dental, vision, and hearing aids. 

Many retirees choose Medicare Supplement Insurance (Medigap) or Medicare Advantage plans to fill these gaps. Timing is critical: missing your initial enrollment period can result in permanent premium penalties. 

Step 3: Emotionally Preparing for Retirement

Fewer responsibilities, less structure, and more time. Am I ready for a purposeful retirement? The psychological transition is often more challenging than the financial one. 

Retirement represents a fundamental shift in identity and daily structure. Without the external framework of work schedules and professional responsibilities, many new retirees struggle with how to spend their days meaningfully. Your career likely provided not just income but also identity, social connections, and purpose. 

Start preparing emotionally before your retirement date. Develop hobbies and interests, build social connections outside of work, and consider what will give your life meaning beyond your paycheck. Some find purpose in volunteering, mentoring, creative pursuits, or focusing on family relationships. The key is being intentional about creating structure and purpose in your new chapter. 

Step 4: Social Security & Long-Term Care Insurance

You've paid into Social Security over the entirety of your career, but how do you make sure you're getting the most in return? Plus, planning for potential long-term care needs protects your retirement security. 

You can claim Social Security as early as age 62, but benefits are permanently reduced. Waiting until full retirement age (66-67) provides your full benefit. Delaying until age 70 increases benefits by 8% per year—a guaranteed return. For married couples, coordinated claiming strategies can maximize both current income and future survivor benefits. 

Many retirees find themselves needing some form of long-term care, which can quickly exhaust retirement savings. Options include traditional long-term care insurance, hybrid life insurance policies with care benefits, or self-insuring by earmarking specific assets. Address this risk before you need care, when you have the most options available. 

Step 5: Estate Planning for All

You have assets you'd like to pass onto the next generation; can estate planning help? Estate planning isn't just for the wealthy; it's essential for anyone wanting to protect assets and ensure their wishes are carried out. 

Every adult needs four basic documents: a will, financial power of attorney, healthcare power of attorney, and advance directive. These ensure your wishes are known and can be executed if you become incapacitated or pass away. 

Estate planning isn't a one-time event. Review your plan every few years or after major life changes to ensure it reflects your current wishes and takes advantage of new opportunities. 

Begin your Retirement Journey Today

Successfully navigating retirement requires addressing all five of these essential areas. While the process may seem complex, breaking it down into manageable steps makes it achievable. 

At OneDigital, we're committed to helping you eliminate financial stress and make informed, confident decisions about your retirement. Whether you're just beginning to think about retirement or actively planning your transition, professional guidance can help you coordinate these areas and identify opportunities you might miss on your own. 

Ready to dive deeper into your retirement planning? Join my comprehensive Retirement Journey Webinar Series. In these five detailed sessions, you'll gain actionable strategies, practical insights, and the confidence you need to navigate your retirement transition successfully. 

Register for the Retirement Journey Webinar Series and take the next step towards a secure future. 

Investment advice offered through OneDigital Investment Advisors LLC. 

OneDigital Investment Advisors LLC and their associates are not estate planners and cannot provide tax or legal advice. Consult your estate-planning attorney or qualified tax advisor for specific advice regarding your situation.