Every stage in life requires a plan to be executed in a way that will benefit you. Before you jump into retirement, you need a couple of plans. One plan is a financial one. When you get to the time in your life that you are done working, you need to be sure that you can afford it. Another plan you need is a lifestyle plan. What will your days look like when your schedule does not revolve around your work life? Having these planned out will make the transition into retirement as smooth as possible.
Financially you need to be sure that you will have enough to cover your expenses. Retirement will not be comfortable or easy if your new income does not cover the lifestyle that you want. The first thing you need to do is keep track of how much you are spending each month. This goes past the regular bills. How much are you spending on extras as well? For example, the amount you spend on eating out and entertainment needs to be accounted for. Get an amount that you feel comfortable with and discuss it with your financial advisor. If you need to make some lifestyle changes, you will want to start those before your retirement date.
What are you going to occupy your time with? There are so many different things that you can do once you are retired. The options can be a little daunting. Before you reach your first day of retirement, have a plan on how you will spend your days. It may be great the first week to sleep in all day and do whatever you want. After that, the enthusiasm for doing nothing will fade. If you are going to volunteer your time, get it set up. Are you going to travel? Know how you are going to go about it. Whatever you want, have it planned out. And you may find you need a new plan and want to switch it up.
Leaving your career means that you will be leaving your insurance behind as well. Insurance is needed by all, especially as we get older. There is going to be more need for it as you age. Find someone to help navigate you through finding the right plan during your retirement. Healthcare.gov has some information to get you started. Don’t leave finding your medical plan until after you retire. You will be to account for the cost when creating your retirement budget.
Where will you call home? Now that you do not have to live where you do for your career, you can move. Do you need a large home, or do you want to downsize? These are all questions you will want to work out before retirement. Test out all the places you dream of retiring on vacations. Then, have your retirement home ready to go when you are.
Plan your retirement now! Don’t wait until it is too late!