Albanians Who Have Spent 20+ Years in America: 7 Financial Things You Shouldn’t Leave Until Retirement Is Close
After spending 20 or more years working in America, retirement can suddenly feel much closer than it once did. During those years, you may have built a Social Security record, retirement accounts, home equity, savings and other assets while also supporting a family in the United States or abroad. Waiting until the final year or two before retirement to organize everything can leave less time to correct problems or strengthen your financial position.
First, review your Social Security earnings record before retirement is close. Make sure the earnings reported under your name reasonably match your work history, because Social Security benefits are connected to your covered earnings record. If you’ve worked for decades, checking your record earlier gives you more time to investigate missing or incorrect information rather than discovering a problem when you’re ready to claim benefits.
Second, find out what you’ve actually accumulated in your 401(k), IRA or other retirement accounts. Someone who changed employers several times over 20 or 30 years may have retirement money held in multiple accounts. Create a simple inventory showing each account, its approximate balance and where it is held so your retirement plan isn’t based only on Social Security.
Third, don’t wait until retirement to calculate your future monthly expenses. A household spending $7,000 per month while working may not necessarily need the same amount after retirement, but housing, property taxes, insurance, food, transportation and healthcare don’t simply disappear. Even a retirement budget of $5,000 per month represents $60,000 per year, making it important to compare expected expenses with expected retirement income well in advance.
Fourth, examine your debt before your paycheck stops. A mortgage, car loan, credit-card balance or personal loan can consume a much larger percentage of income after someone leaves full-time employment. For example, $1,500 in monthly debt payments equals $18,000 per year, so reducing expensive obligations before retirement can significantly change how much income your household needs afterward.
Fifth, think carefully about healthcare and insurance costs. Retirement doesn’t mean every medical expense suddenly becomes free, and coverage can depend on your age, eligibility and circumstances. Understanding your expected premiums, deductibles, prescription costs and potential out-of-pocket expenses before leaving work can prevent healthcare from becoming an unexpected burden on retirement savings.
Sixth, decide where you actually expect to live during retirement. Some Albanians plan to remain permanently in New York, others want to spend part of the year in Albania or Kosovo, and some consider moving back permanently. Housing, travel, healthcare, taxes and access to U.S. financial accounts can look very different under each scenario, so compare the costs before selling property, transferring large amounts of money or making a permanent move.
Finally, bring everything together into one retirement picture: Social Security, retirement accounts, savings, investments, property, debts, insurance and expected monthly expenses. If you expect $4,000 per month from reliable retirement income but estimate that your household will need $5,500, you have identified a hypothetical $1,500 monthly gap while there may still be time to address it. After 20+ years of work in America, retirement planning shouldn’t begin with the question “Can I stop working next year?”—it should begin years earlier with “What income, savings and expenses will my family actually have when the paycheck stops?”
Disclaimer: This article is for general educational purposes only and is not personalized financial, retirement, tax, Social Security, Medicare, investment or legal advice. Benefits, taxes, healthcare costs and retirement needs vary by age, earnings history, residence, household circumstances and applicable rules. Review current information from the relevant government agencies and consider qualified professional advice before making major retirement decisions.