Retirement is one of the biggest things you will ever do. And, how to retire well is a big question.
Here is a retirement checklist of the important things you should do just before and after you retire for a happy and secure future:
1. Create, Maintain and Evolve Your Retirement Plan
Okay. This should be too obvious to even mention: you should have a highly detailed retirement plan before you retire. And, you should assess your plans ever few months after you retire.
However, Gallup Polls found that only 43% of retired investors and a mere 36% of non retired investors have a written financial plan.
Do you really want to wing it in retirement and risk running out of savings completely? No, it is better to have a plan for exactly how to retire. Having a retirement plan can relieve stress and help you make better decisions now and for the rest of your life.
A good retirement plan involves creation of a very detailed budgeting for now and projected into your future. You need to know how much you want to spend and how your expenses will change over time. You also need to figure out exactly how much you have, how to invest, how much you can withdraw, what you’ll need for healthcare, where to live and much more.
The NewRetirement retirement calculator makes it easy to create and maintain a retirement plan. This tool was recently named a best retirement calculator by the American Association of Individual Investor’s (AAII).
2. Take a Hard Look at Your Retirement Benefits
Social Security and Medicare are benefits that almost all of us will receive — they are a big part of figuring out how to retire.
Social Security: You want to think very carefully about when to start Social Security. This is one of the most important decisions you’ll make in the year you retire. (Although it is possible — and often advised — to retire from your job but not start Social Security until much later. And, it is possible — but not usually advised — to start Social Security before you quit working.)
The longer you wait, the more your monthly benefit will be. Use a break even Social Security calculator to figure out the best time to start this benefit.
Medicare: You of course know that you are eligible for Medicare at age 65. However, in the year you retire, you’ll want to be sure that you are informed about the out of pocket medical costs you’ll encounter during retirement and make sure you have the resources to afford the care you want to receive.
If you have not already, you should also take a hard look at supplemental Medicare insurance. These plans can help you save money. Compare your options here.
3. Celebrate!
Retirement (especially if you have prepared a responsible plan) is a big reason to celebrate! Throwing a party to commemorate the occasion and your career can be a wonderful way to launch the next phase of your life.
Get tips for planning a retirement party.
4. Find a Cause
Having meaning in your life is a critical component of happiness. Many people find purpose in their careers. When you retire it is important to figure out a new purpose for your life.
You don’t need to save the world, any cause large or small can help you maintain your vitality.
Whether you opt to work full time on a single cause, volunteer once a week or just adopt a pet, whatever you do should give you personal satisfaction. When thinking about purpose, think about what kind of legacy you want to leave to your community.
5. Gussy Yourself Up
Retirement is not a time to fade into the woodwork. Retirees these days see retirement as a new beginning so it is an ideal time to freshen yourself up. Your old look might not be compatible with your new life.
Whether a makeover means a new pair of running shoes or a head to toe remake, is up to you. Clean out your closets, donate what you no longer need and make sure you are suited for your new activities.
Think about a new retirement wardrobe, haircut and sense of self.
6. Keep Confidence in Check
Optimism soars in your sixties. Study after study shows that people feel happier and more confident in retirement.
However, you will want to be careful to maintain a realistic outlook. Don’t overspend. Be careful with ambitious plans. Think about what you need today as well as what will happen in the future.
7. Set a Goal
Having a goal is a good way to make sure that your life is organized in a positive way.
Your goals do not necessarily have to be important, just satisfying to you. Set goals for improving your golf score, seeing grandchildren, smiling at people, watching less TV.
8. Plan Big Purchases
In the year you are retiring, you should probably try to document all of the big purchases and financial decisions you will want to make.
Will you need a new car? Are you hoping to go on a big trip or buy a boat or RV? Do you want to try to contribute to your grandchildren’s education?
Work these big purchases into your overall retirement plan.
9. Simplify Accounts
If you have multiple retirement accounts, you might want to see what you can do to consolidate your savings. Making your retirement finances less complicated can save you money on fees and can reduce the stress of managing it all.
Just be sure that if you are consolidating tax advantaged accounts like 401ks and IRAs that you follow mandated rollover procedures so you do not inflate your tax burden.
10. Find a Routine
After retirement there’s nothing but time, so it might seem that schedules aren’t crucial. But a routine might be as important as ever, and for several different reasons.
Routines help us stay productive and get things done. We do things that are routine out of habit, and the fact that you don’t really need to think about it reduces stress. Routines are a good foundation for enabling you to be creative. In fact, routines have been proven to increase health and psychological well being.
In your first year after retirement, it is especially important that you try to establish healthy routines. Whatever else you include in your routine, be sure to include exercise. Exercise is a critical component of a happy and healthy retirement and once it becomes routine, it is a true joy. Whether it is daily gardening, a walk around the block or training for a marathon, just make it part of what you do every day.
11. Try 3 New Things
Most retirees feel that retirement gives them a sense of freedom and optimism — making this an ideal time for you to try new things.
Trying new things is fun, it reduces boredom and it forces you to grow.
Best of all, these new experiences can improve your brain function — making you healthier and more vital.
12. Clean Out the House or… Relocate
Our homes are usually set up to accommodate our lifestyles. In retirement, life changes pretty dramatically. You will want to first assess whether or not where you live is ideal for what you want out of retirement. If it isn’t consider downsizing or relocating to a best place to retire.
If you love where you live, consider taking a sweep through the house to clean up and get rid of things you no longer need.
13. Get a Check Up
Medicare offers free yearly check ups. And, meeting with your doctor in the year you retire is a great way to kick off your future. Discuss ways to stay healthy, get your flu shot and create a plan for aging.
14. Make Sure Your Kids Are Independent
Currently record numbers of 18-34 year olds are living with their parents. These children can often be a financial burden. Your own parents might be another potential expense that you will need to budget. Will they need financial assistance? Will you need to care for them as they age?
When you retire, you need to assess all kinds of expenses — family included.
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