Should You Retire Already? 10 Top Tips to Preparing for a Probable Sharp Drop in Income
The one thing almost everyone knows is that retirement income is not guaranteed. For many people, this realization leads to two all-too-familiar responses: either retirement is pushed further into the future, or the decision is made to work a bit longer. But what if retirement income is not guaranteed? What if you are prematurely forced out of the workforce or if your income suddenly drops? For most people, a sharp drop in income represents a major life change. It can trigger a range of emotions, including anxiety, fear, and anger. This uncertainty can lead to poor decision-making and damaging actions. To avoid making big mistakes when your income drops, here are 10 top tips to prepare for a probable sharp drop in income: 1. Review your retirement savings and income predictions. The first step is to make sure you have a good understanding of your retirement savings and income predictions. Use tools like retirement calculators to get a rough estimate of your retirement income. This can help you plan for potential income drops and make decisions about how much money to save for retirement. 2. Review your debt obligations. Another major life change associated with a sharp drop in income is a change in your debt obligations. Review