After working hard for many years to support not only yourself but also your family, there comes a time when you need to kick back, unwind, and let your obligations go. This is the time commonly known as retirement. The reward for countless late nights and early mornings should come in this phase of life. Retirement is one of the few times during all the years when one may simply enjoy life without always thinking about work or other obligations.
However, leading a comfortable and stress-free life in retirement is only possible when you plan for it early on. Unfortunately, recent statistics reveal that 55% of Americans plan to work in retirement as well, citing concerns that they may not have enough savings to get by. That is not surprising given the fact that the expected savings amount required for a contented retirement rose 10% from 2020 to 2021, now standing at $1.04 million. To better estimate your retirement needs, consider using a retirement calculator.
Given these circumstances, although retirement might appear like the perfect opportunity for one to relax and enjoy oneself, it may not be. Still, don’t worry! Here are a few points that, when you are aware of them, can help you save up enough to enjoy the retirement you always desired.
1. Make some sound investments
While there is considerable emphasis on saving while you are working, only a few people talk about investing this money in places that can generate passive income. Commercial properties, mutual funds, stocks, or a variety of other avenues can help generate considerable returns without you having to do a lot. The prospect of living off interest in retirement is an amazing one since it puts your mind at ease, especially on the financial front. Your savings make you a decent monthly income you can continue spending in a way that satisfies your heart.
2. Determine your eligibility for social security benefits
As a US citizen, there are strong chances that you’ve spent or will spend at least ten years working in some part of the economic infrastructure. Thankfully, that is the threshold for you to be eligible for social security benefits. If you haven’t been working for that long, you won’t be receiving any benefits, but the chances of that are obviously slim. Still, it is important to verify with the respective departments at least once if you are eligible or not. It helps you get clarity on whether you will have government support in retirement or whether you need to consider other options to make up for this income.
3. Check to see if you have enough money saved
The need of having adequate money saved up so that you don’t have to worry about monetary issues after retirement is imperative. Since the retirement age in most parts of the country is 65, and the average life expectancy currently stands at 76, you’ll need to save for a minimum of five to ten years’ worth of living expenses. That’s just a careful estimate based on available data, but that doesn’t mean it is a line set in stone. Either way, try to set aside enough money by being smart about your expenses early on, making strong investments and always thinking about the future value of money instead of the present value.
4. Consider your options for health insurance
After you retire, your employer’s health insurance plan won’t cover you anymore. It is pertinent, therefore, to conduct research and weigh your options to find the coverage options that best suit your requirements. Health insurance is a great asset for a rainy day because it takes a significant expense that arises post-retirement, i.e., medical costs, out of the picture. You can also explore life insurance options as well if you want to ease the burden on your loved ones when the time comes.
5. Think over your housing options
Would you prefer to stay in your existing home or move somewhere else? You may want to consider living closer to your loved ones if they live in a different city, state, or even country. Naturally, then, your home and any other associated living expenses will become part of the retirement planning equation too. If you are a homeowner, you will need to consider selling your current home or using it as a rental to generate more income. As for renters, it is important to remember that average costs differ from city to city and even more from state to state. To guarantee a smooth transition on this front after retirement, put in the proper research and ensure you have a solid, well-grounded plan in place before you can actually move.
6. Put together a schedule for what you want to do with your time
Retirement is the perfect opportunity to check off a host of items off your bucket list, especially those you’ve never really had or couldn’t make the time for. Create a list of everything you want to do, and then check each item off individually. Want to travel? Use up all the miles you’ve accumulated over the years. Wish to take up a hobby? Find the best place for it in your neighborhood. Willing to help the community? You’ll find loads of opportunities within the area to support causes close to your heart.
7. Keep up a healthy lifestyle
You may enjoy your retirement years if you continue to live a healthy lifestyle. What’s the fun in saving up for this chapter in life when all you end up doing is taking trips to the hospital or lying in bed with little to no energy for anything at all? Indeed, this is not the routine you imagine for yourself when you finally get a break from that redundant corporate life. There are several methods to change this, such as taking up a new hobby or activity, joining a social organization, or even going to the park for a healthy walking session with a couple of your friends. Eat healthy, exercise, and maintain a positive mindset; these are the three essentials that can lay a strong foundation for you.
Conclusion
Why exactly does a person spend a major part of their life struggling if they can’t enjoy retirement? Well, that is an ironic question, but if you want to have a relaxed and comfortable life after 65, you need to start preparing for it as soon as you start working. Being careful with your money, saving regularly, and investing in revenue-generating streams and yourself are the few things that can pay substantial dividends, making the final phase of life a deserving swansong.
