The question of when one wants and/or has to retire is completely individual. But, if you are ready to take that step and start a new chapter in your life, it’s also important to be properly prepared for it. After all, there are several things to consider, especially when it comes to your finances and health. That said, keep on reading as the following tips may help you organize and plan better for your future.
1. Address your finances
So, first things first – you need to check your finances. This is essential before you retire so that you have a proper insight into what your income will be and what expenses you’ll have. Obviously, you may want to continue working up until the final age for retirement to get full social benefits once actually retired if you still have your family to think of. Hopefully, you won’t have to worry too much about your kids as they’re probably old enough to take care of themselves and have their own families.
With that in mind, calculate the difference in your monthly income. Most people want to downsize once they retire. Not only does that make their lives easier but it’s also quite cheaper.
2. Consider your health and financial situation
Obviously, once you reach the age of retirement, you’ll probably have to worry about your health more than before. And even if you feel completely healthy now, you won’t be getting any younger. In that respect, you also want to address the healthcare you’d be entitled to as a pensioner.
However, most people these days prefer to take matters into their own hands – especially if they wish to downsize as well. Essentially, top-quality retirement communities such as those with aged care at Mark Moran Vaucluse are gaining popularity. This is due to the fact that the residents are free to live their own life independently with the added bonus of 24/7 healthcare available as well as the company of their own peers. Not to mention that these communities make it easy to engage in interesting activities and hobbies, which is very important once you retire.
3. Stay away from new debt
If it’s in any way possible, try to pay off any debt that you may have before you actually retire. Obviously, the worst-case scenario may not happen at all, but you never know. The debt you carry with you into retirement may end up draining your retirement income. What’s more, make sure that you don’t get into new debt, not just in your 60s but in your 50s either. As you can imagine, debt at that age will be difficult to pay off by the time you retire. If you’re helping your kids and/or grandkids with student loans, make sure that you note that your financial aid will cease once you retire.
4. Practice makes perfect
Before you retire, you can practice your retirement. For instance, take two weeks of your time to see how the things you’ve planned for retirement would actually work – in practice. What’s more, it gives you time to check out new properties and retirement communities that you’ve been considering thoroughly. With that in mind, do your best to test out as many plans and activities that you had for your retirement in order to see what works and what doesn’t. This will save you a lot of stress later on and help you prep better for the future.
5. Make sure that you have things to do
In case you weren’t quite sure what exactly you have to test and check in your retirement practice, then you haven’t thought about the activities and hobbies at all, which is a huge mistake. After all, you may be fine with not having any obligations for a couple of days, but in the long run, making a shift from having something to do to having nothing to do will cause stress and frustration. In that respect, make sure that you carefully consider hobbies and activities you’d like to take up once you get all that free time. It will definitely do you a lot of good, both physically and emotionally. If you’re thinking about retirement, don’t hesitate to talk to your financial advisor about it. Also, let your friends and family in on your decision. As you discuss your options with other people, you might learn new information that turns out to be incredibly helpful. Therefore, don’t keep this to yourself.