I just told my boss I’m retiring this year — and now it finally feels real. How do I get myself ready?
When budgeting for retirement, keep in mind that you may not spend money the way you did while you were working. Maybe you’re close to paying off your mortgage, leaving you with extra funds. Perhaps you want to travel more, increasing your travel costs..
Don’t forget to budget for the long term as well, factoring in things like home renovations to help you age in place or the funds you might spend on health care down the road.
If you’re retiring before you’re 65, you’ll also need to budget for health-care premiums before you qualify for Medicare.
In the course of this budgeting process, you may discover that you don’t have enough money to sustain you in retirement. If that’s the case, consider boosting your income by continuing to work (e,g., part-time job), downsizing your home (to cash in on equity and save on housing costs) or selling a car you don’t need anymore.
Finding new purpose in retirement
Finances are just one part of your retirement plan. Creating a sense of routine and purpose can help you ease into your new lifestyle, and prevent anxiety and stress.
For example, you can establish a morning routine that incorporates a daily walk and logging into an online writing class. Or volunteer at an animal shelter a few times a week, leaving other days free for relaxing activities like reading or sitting by the beach.
The University of Michigan reports that one in three retirees experience some form of isolation and loneliness, so staying socially active and engaged is essential.
With your budget set, and a daily routine filled with purpose and pleasure, any retirement jitters you have will be replaced with a sense of opportunity in this next stage of your life.
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This article originally appeared on Moneywise.com under the title: I just told my boss I’m retiring this year — and now it finally feels real. How do I get myself ready?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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