How to Prepare for Retirement
If you are approaching retirement age, you may be facing one tough question after another. What will I be doing when I retire? How will my savings sustain me for the rest of my life? How will I use my time?
To retire happily and successfully, you should prepare early for this crucial phase in your life. Here are some steps you can take to achieve your goals:
Talk it out.
Consult your significant other, children, close friends and most of all, ask yourself if you’re really ready for this next big step in your life. Your decision will greatly affect the lives of your family members so make sure you are on the same page with them.
You can seek professional help, too. Consult a marriage therapist with your spouse or you may also choose to do it yourself. You can gain valuable insight and examine your situation pretty well with another person helping you see the bigger picture. You can also look for a financial advisor that you are comfortable with to help you see what’s in store for you ahead.
Start saving today.
If you want to maintain your standard of living, make sure that your finances are strong. You are not too young or too old to save up. Grab every opportunity possible.
Examine your Social Security contribution and calculate the benefits that you will get from it. You will be eligible for annual payments based on the amount that you have been able to contribute during your entire career.
You can also start contributing monthly to a 401 k offered by your employer. You can also tap into IRA’s or Individual Retirement Accounts. Other options include investing in bonds and stocks.
Make the necessary adjustments in your daily budget. Most people try to save 10% of their monthly income to invest for their retirement. The amount you can save monthly can be adjusted depending on your income and basic expenses.
Gather your contacts and expand your network.
Reconnect with all your friends since childhood. You may have taken them for granted while you were busy all these years with your job. You will have tons of time to rekindle old connections and this will make you socially secure.
Continue to be active in your community. Look for something that excites you. You can do community service, part-time jobs or do other volunteer work. You are retiring from work, not from life so get ready for more fun-filled challenges.
Never stop learning.
You may have neglected a lot of things when you were busy working. Now is the time to learn new stuff. Master some of the household chores you never did before. Learn to cook or fix the clogged sink. Change your tires yourself. Go back to stamp collecting or re-reading your favorite books or comics at home. There are tons of activities you can do now since you have loads of time.
You will also learn a lot more by leaving home and traveling around the world. Set some money aside to go places and try out other stuff. Schedule fun trips and pilgrimages
every now and then and get to know many other cultures aside from yours.
Sure, it’s okay to seize the moment and enjoy living in the present but it pays to be responsible especially if you want a smooth-sailing retirement period. Start saving now and plan ahead and enjoy the rest of your life.