Dreaming about retirement is easy enough—long days with nothing but choices on how to spend your time. Sounds great, right? But before you say goodbye to the 9-to-5 grind, don’t forget you have plenty of things to sort out so those relaxed days stay that way. Here are ten important things to think through so that your retirement is everything you hope for and more.
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Do the Math on Your Money
Let’s talk cash first because — let’s face it — money matters. Have you saved enough? Check out your savings, pension, Social Security and any other income sources. You have to make sure they can cover daily living & those little luxuries for 20 (or even 30) years. Running out of money is no joke & making sure you’ve got enough is step one for a worry-free retirement.
Figure Out Your Health Coverage
Healthcare isn’t getting any cheaper and if you retire before 65, Medicare isn’t an option yet. You’ll need a plan if you’re losing health insurance from your job that covers the gap before Medicare kicks in. After all, it gets pretty pricey when you’re not prepared. So, it’s well worth checking out what other options you have to cover those years.
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Where Will You Live?
Think about your living situation and whether your current home is going to be good for the next few decades. Some people decide to downsize or move to a spot with other retirees to save money and have a bit of company. Location affects all kinds of things, including cost & convenience—not to mention how much fun you’re going to have. Choose wisely!
Get Rid of Debt
You don’t want debt hanging over your head during retirement so you should tackle those big bills now. That means paying off the house and the car, along with those pesky credit cards, before you say goodbye to the 9-to-5. Less debt equals fewer monthly outgoings, giving you more freedom to enjoy your retirement days without any financial stress.
Maybe Keep a Side Hustle
Forget what you’ve heard—just because you’ve stopped working doesn’t mean you can’t earn. Many retirees do part-time jobs or even try turning hobbies into a little side business because it’s a great way to keep some cash coming in. It’ll also keep you busy & connected with the community.
Keep up With Your Friends
Retirement can get lonely because your opportunities to socialize get smaller. As such, you should think about how you’ll keep up with friends or make new ones, like joining clubs or volunteering. Even keeping up regular meet-ups with friends is enough to stay socially active and keep the blues away.
Understand the Tax Game
Taxes don’t stop when work does—money from retirement accounts like your 401(k) or IRA gets taxed. You need to know how to handle these extra expenses because it’ll save you a lot of issues down the line. Better yet, talk to a tax advisor to get a clear picture & plan your budget accordingly.
Plan for Price Hikes
Prices go up—that’s life. You can’t do anything to stop that except make sure your retirement fund includes the possibility of things costing more down the road. Time and time again, retirees have found their budgets getting tighter than they planned for because their retirement income didn’t keep up with inflation. Don’t let that be you.
Set Up an Emergency Fund
Surprises aren’t always good and unexpected costs like a broken furnace or medical bills can throw a wrench in your plans. You should have some extra cash stashed away for emergencies like this. This way, you’re ready for whatever comes your way without panicking. You can’t put a price on that feeling!
Get Your Affairs in Order
No one likes to think about it but there’s no greater time to set up your estate than before you retire. That means sorting out a will and figuring out powers of attorney—and maybe even setting up trusts. Whatever happens, you’ll rest easy knowing your loved ones will follow your wishes and that you’ve made things a lot easier for them, too.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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