Are You Ready for Retirement?

Thinking about retiring? It’s important to envision, in detail, what you imagine your life to look like during retirement well in advance and begin planning early to achieve it. Here are a few things to think about when determining whether you’re ready to retire.

Having ample savings before retiring, even if it means working a few extra years to get your accounts in order, is essential. Depending on the lifestyle you hope to lead in retirement, the benchmark for what is “enough” will vary but keep your expectations reasonable and attainable. Be sure to understand each of your savings accounts so that you feel comfortable that you can get early access to funds, if need be, without penalties.

We all know that maintaining good health is undoubtedly a high priority in entering an optimal retirement scenario. It’s important to determine your healthcare coverage and any costs associated with healthcare beforehand, especially if you decide to retire before Medicare kicks in.

Be sure you are able to live on a budget, not just any budget, but your new retirement budget with any adjustments you may be forced to make. It might be smart to practice living on a fixed budget the year prior so that the adjustment is smoother for you when you’re ready to take the leap.

Starting retirement debt-free will allow you to feel a little more in control of your budget. It will also allow you to feel more stress-free moving forward knowing you don’t have any large debts that, on a fixed income, you may find yourself not being able to reconcile. Pay off any credit cards and loans and then curtail your spending to not accumulate new debt.

You undoubtedly will have a new style of life after retirement. First and foremost, make sure you really are ready to retire. If you’re at all unsure, consider cutting back and working part-time for a while.

When people think about retirement, the first thought is usually about money and that’s understandable. However, to maintain an active, satisfying and happy retirement take some time to think about how you will realistically fill your days. Some people retire and are unhappy because they don’t have enough to keep them occupied. It’s important to find interesting leisure activities and creative pursuits for your mental and physical well-being. And now, welcome to the best years of your life!