Retirement isn’t just about stopping work—it’s about starting a new chapter of life. It’s something many people dream of for years, but planning is essential for every aspect of a major life change. Most people retire around age 62 — often earlier than expected due to health issues or job changes — so it is important to plan ahead in order to have a fulfilling retirement. When approaching retirement, take steps to ensure you are ready both mentally and financially.
Being Mentally Prepared for Retirement
Psychological preparation is crucial when stepping away from a career. Retirement requires identifying your purpose and understanding how you’ll spend time. Many retirees find fulfillment in a variety of ways, including:
- Finding volunteer opportunities
- Exploring part-time work
- Pursuing personal hobbies
- Maintaining strong social connections.
The key is to retire to something meaningful, not simply retire from your current job. Having a goal for retirement — even a simple goal like spending more time with your grandchildren or starting a garden — is essential for finding fulfillment when you’re not working 40 hours a week.
The Financial Aspect of Retirement
Financially, understanding your needs is essential before stepping into retirement. This involves calculating monthly income requirements, determining the optimal time to claim Social Security, exploring flexible work options, and creating a comprehensive retirement income plan. A financial advisor can help you in the years leading up to retirement to make a plan specific to your situation.
A Gradual Transition to Retirement
A gradual transition can make retirement smoother, such as reducing work hours, switching to less intensive roles, or exploring part-time and passion-driven work that keeps you engaged and provides supplemental income. If you need time to plan
Remember: Thoughtful planning helps create a fulfilling post-work life.
This topic was featured on the Get Ready for the Future Show. Be sure to subscribe to our YouTube channel to hear more financial insights on a weekly basis, and ask your own question by emailing it to show@getreadyforthefuture.com or calling or texting your question to 501-381-5228.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
