Whether you're leaving work altogether, planning to work part-time, or starting a second career, the decision to retire is a big step, and it can be made much easier with proper planning. The following steps can help give you a start, and your objective should be to complete this list before you retire.

Step One: Determine how much income you will need in retirement. Make a list of all your current expenses chances are, you'll continue to incur the same expenses in retirement that you incur now.

Step Two: Determine your sources of income. Most people receive retirement income from Social Security. Many also can receive income from a company pension or retirement plan, as well as from personal savings and investments (including IRAs). Find out how much your Social Security benefits will be; call 800-772-1213 to request an Earnings and Benefits Statement (SSA-7004) from the Social Security Administration.

This statement estimates your future benefits and tells when and how you can qualify for benefits. Ask your employer about pension benefits, and ask a financial advisor to help you calculate how much income you can generate from your savings, investments and IRA accounts.

Step Three: Factor in the impact of inflation and taxes. Inflation, which over the past 20 years has averaged 5.5% per year, threatens the purchasing power of your income. In addition, most if not all of your retirement income will be taxable. Make sure you consider the impact of these costs in Step One above. Make sure your investments are able to overcome taxes and inflation.

Step Four: Consider your family obligations. Your family situation will affect many of your retirement decisions. You may still have children facing college costs, or elderly parents in need of long-term care. If you plan to sell your home, consider the costs involved such as moving, home improvements and real estate commissions.

Step Five: Give your insurance benefits a "checkup." Most health insurance plans provide for continuing coverage after you retire. However, long-term care costs can destroy your retirement plans, so you should obtain a long-term care policy before your retire. Also, after age 65, Medicare can help with some health care costs, but like Social Security, it is designed only to supplement existing coverage, not replace it. Therefore, you should consider a Medi-gap policy and other insurance options to cover costs that Medicare doesn't cover. You should sign up for such insurance well in advance of retirement.

Step Six: Protect your assets from taxes and probate. A sound estate plan, which includes your will, can give vital information to others about your assets and debts, provide funds should you become disabled, appoint an executor for your estate and keep taxes to a minimum after your death. Consult with a lawyer who specializes in wills and trusts, as general practice lawyers may not have the expertise you need.