8 things to consider before retiring

Save, save and save some more is one of the mantras of retirement preparation. These days, it's been joined by "work, work and work some more." People have responded to investment, employment and housing shocks by deciding to continue working. Some surveys show people are typically adding a full five years onto their employment plans.This would be a huge financial and lifestyle change for older Americans, if it happens. For years, retirement surveys have found a large gap between when people say they plan to retire and when they actually mothball their office and factory wardrobes. Consistently, actual retirements have occurred nearer age 62, the earliest date at which people can elect to begin receiving Social Security benefits. This has been several years earlier, on average, than the dates pre-retirees say they plan to stop working.So, first off, let's wait and see what actual retirement patterns look like once the economy has settled into what appears to be a sustained period of disappointingly low growth. Before this can happen, of course, we need to get past the congressional impasse on the nation's debt ceiling and deficit crises while avoiding, let's hope, a repeat visit to Recessionland.More from U.S. News World Report The best places to retire But as you consider your own retirement prospects, here's a checklist of investment and income matters you should review:Work-retirement tradeoff. For each additional year you work, you should be able to generate an additional two to three years of retirement coverage.There is, of course, the extra year of work itself. Presumably, you will be spending Rosetta Stone American English none of your retirement nest egg during that year, and, let's hope, you will be adding to your savings. Let's say this adds 6% to your nest egg (the 4% you didn't spend and 2% in new savings). You'll also be getting an extra year of earnings on your retirement funds. That should be worth another 6%.Lastly, you can extend the age at which you begin collecting Social Security. Social Security benefits rise by roughly 8% a year for each year you delay taking benefits between ages 62 and 70. That's 12% more in your nest egg and 8% tacked onto your Social Security income for each year you continue working. The added income may even raise your Social Security benefit if you earn enough to raise your lifetime wage base.Longevity and retirement. Once you turn 65, you'll live, on average, an another 18 (men) to 20 (women) years, current longevity statistics say. Your retirement savings will need to stretch over a shorter period should you keep working until age 70.International investments. Traditionally, diversification of retirement investment portfolios has been about asset classes. You made sure there was an appropriate balance between stocks and bonds, and paid attention to the risk and return characteristics within each type of asset. Increasingly, your investment mix needs to become focused on foreign holdings.

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