Countdown to Retirement

How to keep your retirement plan
on track in an uncertain economy

        The experts at Consumer reports Money Adviser, www.ConsumerReports.org, have come up with a timetable to help you keep your retirement plans on track. Here are some of their tips:
        • 15 years before retirement. Develop a financial plan. If you want to retire around 60, you should get serious about planning, by the time you hit your mid-40s. A financial planner or the right software can help your figure out how much money you'll probably need. Get help from your employer. 35 percent of companies offer retirement planning services to their workers. So take advantage of any perks that your employer offers, like educational seminars or free-financial-planning software.
       • 3 to 5 years before retirement. Pay off debt. Retire any high-interest credit card debt before you retire. You also might want to retire your mortgage, even if your tax-deductible monthly payment doesn't bust your budget. You can do this before you stop working by making an additional payment toward youR principal each month, as long as your loan agreement allows prepayment without penalty.
        • 1 year before retirement. Set up an income stream. When you're retired, you don't want to cash in a CD or sell shares of stock whenever you get a bill from Macy's or your landscaper. Instead, plan to draw a set amount from your asset monthly or annually. Keep enough in a money-market account to cover your expenses for the next three to six months.
       • 6 months before retirement. Decide how to take your pension. If you have a pension plan at work, you can usually collect your money either as a lump sum or an annuity. Taking it as a lump sum might make sense if you have concerns that your employer may go bankrupt and renege on its pension promises. Find out if the Pension Benefit Guaranty Corp. insures your pension and whether your monthly benefit exceeds its payment cap.
       • 3 months before retirement. Sign up for Social Security. You can start collecting at age 62, but you'll get a bigger check if you hold off. YouR payout will increase for each month between 62 and 70 that you delay taking benefits.