This year, the oldest Baby Boomers turn 61, meaning that the United States has officially begun the race to Baby-Boomer retirement.

Tips for Preparing for Retirement

1. Before retirement, focus on investing. Eliminate credit card debt by funneling money previously used to shop, dine out or travel to paying debt, and then into retirement savings. People age 50 and over can contribute $20,500 to a 401(k) plan in 2007, and $5,000 to an individual retirement account or Roth IRA. For people younger than 50, those limits are $15,500 for a 401(k) and $4,000 for an IRA.

2. Live on planned retirement income now. Give retirement a "dry run" by living on your anticipated post-retirement income. Consult a financial planner to determine how much income you will require. Meanwhile, use the savings to pay off remaining debt (including credit cards, vehicles and home mortgages).

3. Line up insurance. Review insurance needs, including homeowner's, auto, long-term care, umbrella policies and life insurance (which might not even be needed in retirement). If changes are needed, make them while employed. Insurers give their best rates to people with good credit scores, so plan to stay with a policy for a while during the transition to retirement.

4. Settle into home and financing. If you plan to move to a smaller home or a condominium, consider moving before retiring. You are likely to receive better mortgage terms with your current income than you will later. The tax deductions associated with a move also might benefit you more while employed. Similarly, for the best terms, open any planned home equity line of credit on a home before retirement.

5. Keep the cards. If you plan to streamline finances, think twice about closing old accounts. Credit scores are partly determined by comparing debt to credit available. Closing unused accounts while maintaining some debt results in a likely higher debt-to-credit ratio, which looks like a greater credit risk -- and lowers credit scores.

6. Check credit reports now -- and frequently later. Don't retire your vigilance when you retire. Check credit reports at least once a year -- more often if you plan extensive travel, which exposes seniors to greater risk for fraud and identity theft. Free credit reports are available once a year at www.annualcreditreport.com. All three credit reporting agencies (Equifax, Experian and TransUnion) offer credit reports online, as needed.