When people reach the age of 65, it’s not obvious that they always have the issue with their retirement savings. Maybe they had enough to live comfortably. But there were many instances when the problem was just adjusting to the new routine after having spent years in a 9-to-5 job.
As per an Ameriprise Financial survey of retired baby boomers, there are some typical issues among the retirees:
A Badly missing out the social communication with colleagues that they had regularly (37%)
B Adjusting to the new routines (32%)
C Searching new ways to live the rest of their lives meaningfully (22%)
Many retirees are having these issue while changing from a full-time job to a not-so-busy retired life. It’s not only boring for them but can be emotionally challenging, too.
But before discussing the emotional part, let me remind you about the practical angle, the money part. You must think about it and be prepared financially for retirement.
Let’s have a look:
You can think of retirement with a clear mind when
1 You have enough retirement budget to live with
Your daily costs may drop during retirement, but not as much as you expect. So, you might need to make a retirement budget and start to follow it earlier, at least 6 months prior to your retirement.
To prepare a solid retirement budget, you need to sort out the approximate amount and source of your cash flow after retirement.
2 You have a decent health insurance coverage
A good health insurance policy with low deductibles can help you a lot. Additionally, if it covers your doctor visits, prescribed medicine expenses, hospitalization costs, eye and dental check-up and treatment costs, and other small Medicare expenses, you are more ready to retire with a healthy life.
3 You have nearly paid off your debt burden
Paying outstanding debts after retirement is quite frustrating and it makes your life dull. You’ll have to think twice before spending money on any fun thing just because you have due bills to pay off. Apart from that, you also need to pay for your necessary expenses like the utility bill, food, clothes, gas, sudden events, and much more from your limited income.
So, if you have debts, you are certainly not prepared to retire.
4 You have a strong financial portfolio that can bear losses
If you have a financial portfolio that is quite strong, it can protect your interests in a bad financial market. But it should be diversified with vivid tax-deferred and tax-free assets.
By using those assets you can generate more income and keep on going through a long retired life.
5 Your children are financially strong
You might disagree, but maintaining kids in their high school or college days are very expensive. If your kids are still in college and not financially independent, it’s not a perfect time for you to retire. You may have to gather enough money to pay for your kids’ college expenses.
Now let’s have a look at the emotional angle.
You must think or plan these “emotional” aspects before getting into retired life:
1 Plans about how to spend the time
You might be remembering about your work for the past 40-plus years. Even if you didn’t like your past job, you can’t forget that place where you have worked most of your day time.
Most of the people feel a sense of loss, particularly the loss of responsibility and routine, in the initial days of retirement. It's great that you don't have to deal with heavy traffic anymore, but you have to face an identity crisis during your retirement days.
2 Plans to meet with old friends or make new ones
You’ll be losing a good circle of friends from your work after retiring. So, you may need to start meeting old ones frequently. Plan a weekend dinner or a small party with your old buddies.
Then there are the friendships outside of your office community. Look out for new people in your neighborhood. Your hobby and common interests may help you to meet new pals, too.
If you have already planned for these, yes… you are prepared emotionally for retirement!!
3 Plans for devoting yourself towards a social welfare
Before you retire, you may not have enough time to get involved in social work. But it will be easier to find such a work after retirement. So, start trying by checking out different groups and start volunteering in your neighborhood.
4 Discuss with your spouse how you’re going to spend the time together
During your work life, you might have spent 3 to 4 hours a day together (including the time spent on other stuff on weekends) with your spouse. But after retirement, it will be 24/7.
Your alone time will be finished once you retire. As a result, you both may start considering those annoying habits which you overlooked before.