Wanting to retire is a vastly different concept than being ready for retirement.
Even if you are already retired, you might not be sure if you are actually adequately prepared for this time of your life.
So, how do you know if you are ready for retirement? Here are 4 questions to ask yourself:
Retirement has long been thought of as a withdrawal from working life. And, the traditional connotation of retirement is a life of leisure and without responsibility.
This definition made sense when people only spent a few years in retirement. It used to be that people retired within 3-10 years of their deaths. However, times have changed. Nowadays it is common for people to spend 30 years in retirement.
And, for most people, 30 years of leisure is simply too much. Not only can we not afford it, studies show that a life of only leisure is not at all good for you. There are countless stories of people retiring and feeling depressed and lonely.
To stay mentally and physically healthy in retirement, it is good to:
- Have a schedule — a place to go every day.
- Have responsibility and meaning in your life.
- Have physical, social and mental stimulation.
Retirement for you might mean switching jobs, taking up a new hobby, pursuing an athletic or intellectual goal.
No matter your goal, having a purpose for your retirement is critically important. Do not retire until you have a good idea of what you want to do with your time. Looking for ideas? Here is a list of what to do in retirement — 120 ideas.
Knowing what you want to do in retirement is the first question, next you will want to address where you want to be and with whom.
No matter how you want to be spend your time, retirement should mean that you have more flexibility to be where and with whomever you choose.
Relocating can be a lifestyle choice. Do you have grandchildren that mean the world to you? Do you want to move closer to them? Do you have a passion that is best pursued in another community?
Relocating can also be a financial choice. Do you need to move somewhere less expensive? Is travel important, do you need to downsize to afford that lifestyle?
Making decisions about where you want to be in retirement, can really help you make the most of this time in your life.
Almost anyone can retire, at almost anytime, it is just a matter having enough money to live at your desired lifestyle.
For example, it is possible to live on Social Security alone, but you will not have much wiggle room in your spending.
Retirement is a great time to prioritize what is important to you and make sure that you can afford that. It is also important for you to consider where you might be willing to compromise.
There are so many ways to make your retirement finances work.
- A part time job or retiring later can boost income and savings
- Downsizing can enable you to use some home equity for retirement expenses.
- Cutting your expenses to save more while you are still working is another option.
- Or cutting expenses after you retire can mean you need less savings.
- When you start Social Security can have a big impact on your cash flow.
The NewRetirement Retirement Calculator is a really great tool that lets you test out all these various options (and more). You configure the system with your baseline plan, then you can make changes and immediately see the impact of the change on your finances.
You can discover all of the different levels you have to make your retirement finances work for you and your goals.
This is considered to be a best retirement calculator because you get to explore and really get a sense of what your retirement will look like. Keep playing until you find a retirement financial plan that fits your desired retirement lifestyle.
Then you will know if you are ready for retirement!
Out of pocket healthcare expenditures can be a big G O T C H A!!!!
The data is frightening. Over the course of the an average married couple’s lifetime, out of pocket health care costs could total a staggering $394,954 — $463,849, according to recent research from HealthView Services.
There are a few things you can do to mitigate these costs, including:
- Making sure you optimize your supplemental Medicare coverage.
- Creating a plan for long term care costs — should you need them.
- Taking care of your health — eat right and get exercise.
The NewRetirement Retirement Planner can help you estimate your healthcare costs and model when they will occur during your retirement.
