The financial and particularly budgetary side of retirement planning will always be a core part of preparation. However, there is far more to retirement readiness than fine-tuning your nest egg and your willingness to stick to a budget. Your goal when you retire is not simply to survive but to also enjoy your time in this hopefully low-stress period of your life.
Here are some key takeaways to keep in mind when measuring your overall readiness to retire.
Boredom And Spending
Boredom and loneliness is a surefire way to blow past your budget plans and spiral into overspending in an attempt to fill the gap in your life. This can occur when you realize that the large majority of your social circle only existed at work, making retirement leave you feeling disconnected. When your career has taken up the majority of your time until now, this isn't at all uncommon. The important step here is to make sure you have plans in place to deal with your departure from those former social connections. Now is the time to delve into passions and interests that you've had for years and forge new social connections within them. Plan ahead to avoid a potential post-retirement slump where you spend due to feeling like you have nothing to do and no one to do it with.
Relationships And Retirement
Preparing to retire is naturally a huge step for yourself, but have you prepared those people who it will actively affect? Keep in mind that change is hard for everyone, including those closest to you. If you have a spouse, have you discussed what will change now that you will be home for most of the day? Of course, this change means there will be plenty of time for spending time together and romantic evenings. However, you must realize that being around each other 24/7 may get old very quickly for those who are used to having alone time and separate interests. The same can be said for retirees with dependents living with them in the home. Being home as opposed to at work all day can be a sudden and potentially stressful change for both sides of this arrangement. Have the necessary discussions of everyone's needs and expectations ahead of time to avoid any unnecessary conflict.
Making Big Changes
Are you prepared to make big changes? Retirement is an intense change to your lifestyle and your willingness to follow through can make or break some of your plans. For retirees, health equals wealth, so there are other changes worth making beyond the budget. Avoid the myth of being too old to care or change behaviors that can negatively impact your health and ability to enjoy the retired life. Becoming more active, eliminating or reducing any heavy smoking or drinking habits, and staying mentally stimulated are all important in this critical time in your life.
The social, emotional, and healthcare-related aspects of your post-retirement life can be just as impactful as the financial portion. While they may seem worlds apart for those accustomed to focusing primarily on a career, ignoring them can lead to unnecessary stress and the formation of bad habits. Balance in retirement is everything. Contact BD Financial Concepts to help make the financial side of retiring a breeze.
We are a professional financial services firm located in Sanford, Central Florida.