What excites you about your retirement years? Where will you live? How will you spend your time? Are you worried about your future income needs?
As you approach retirement, there are many decisions to make.
You might have questions about the best time to retire, how to transition your investments to those appropriate for this life stage, when to start taking Social Security and more.
You’ll also want to consider where you’ll live and how you’ll spend your time – because those decisions will impact how much you’ll spend.
The ways you spend your time during retirement will likely look different throughout the years. It may be helpful to design your plan in phases or periods of time.
Many people nearing retirement age aren’t so much ready to quit working as they are ready for change. Thinking about this stage of your life involves challenging decisions as well as exciting choices.
- What activities would you like to pursue?
- Learn French?
- Visit Argentina?
- Volunteer for a local project?
- Dine out regularly?
- Visit children and grandkids living out of state?
- What resources will provide the income to support your interests in retirement?
The old axiom regarding people needing less money in retirement than during their working years doesn’t apply to most of today’s active lifestyles. You might spend less on employment-related expenses but more on other things. Avoid using rules of thumb such as needing only 80% of pre-retirement income for retirement.
Retirement income can come from many places. It’s important to review all the options you have available - and consider how timing your choices when accessing resources can maximize their value.
You might find it easier to make your choices and exercise your options when all of the information about your resources is consolidated in one place.