New Retirement can be a stressful time of life if you have not done proper prior planning with retirement estimator software before ending full time work. The age at which you retire does not have to be determined by the government standards, which are changing depending on when you are born and could change again as Congress works to solve Social Security’s insolvency problems. The age you retire is when you are financially and emotionally ready to retire. Some folks who could financially retire at 50 work until their nineties because they love what they do. Some retire just as soon as they are able to afford it. Most stop full time work around age 65 or whenever they become fully eligible for Social Security. Whatever age you retire at, new retirement can be a time of renewal and purpose unless you have not made the right financial and logistic plans.
What is Retirement
There are as many different definitions of retirement as there are retirees. The stereotypical image is moving to Arizona or Florida to golf every day, or spend your time fishing your favorite hole. But many people spend their time after full time work staying active with volunteer work, pursuing new careers they’ve always wanted to try, or traveling. You may want to buy an RV and explore the country or you may want to move closer to your grandchildren to spend more time with them. Some retire, find they can’t stand not working, and go back into their earlier careers. But whatever it is you plan to do, you need to plan ahead and make sure you have the financial resources to do it. You don’t want to be forced to work as a greeter at a store to make ends meet when you are supposed to be enjoying the rewards of your years of hard work. That way new retirement won’t come as a financial shock.
Planning Ahead
If you are young, being retired may be the last thing on your mind. But even then you should start planning for it. The earlier you start the smaller amount of money you will need to set aside each month for retirement. This may be new to you but it is necessary. Fewer and fewer work places outside of government have so-called defined benefit plans. More employers are moving to new defined contribution plans where you need to pay attention and be responsible for your nest egg. These plans include both traditional and Roth IRAs, and 401k programs through your work. A financial adviser can help you decide which plan is right for you and how best to invest it. If investing is new to you, you need good advice. Then your new retirement can be a time to relax and enjoy what you want to do.
If you are older and approaching the end of your work time, then you need to start to work now on planning for your retirement. It is hoped this is not new to you, either, but if it is, you still need financial help. Financial advisers and investments are not just for the wealthy. Investing in mutual funds or the stock market requires good information that you probably do not have time to gather. That is why you need a good financial adviser. Your new retirement won’t be a time of stress and worry if you’ve made the proper plans.
More Considerations
Other things to consider with a new retirement approaching are where you want to live. A new retirement home may appeal or you may wish to live where you are. A new RV is expensive and you probably wouldn’t want to sell your home to pay for it. Or popular retirement destinations can be expensive. How to pay for a home, the move, and other expenses should be planned ahead so your financial adviser can help you meet them. If you’re young, you can put off those decisions until later but the closer you are to retirement, the more you need to know and plan ahead. In your new retirement would you rather be worried about money or enjoying all that life has to offer? With planning you can be enjoying it.
Whatever it is you wish to do when you have retired, you will need the financial resources to pay for it. The younger you are the less likely Social Security will cover your expenses. That is why you need to plan now to have the finances you need to afford to retire. You don’t want to outlive your money so you need to be able to live off the interest, not the principle. Then you can leave the principle to your children or favorite charity. Enjoying your new retirement is simply a matter of planning ahead.
