Congratulations! You’re finally at the finish line. Your years of hard work are coming to an end and your days of freedom are here. Although a huge weight has been lifted off of your shoulders, there are a few blunders to avoid in order to maintain bliss in retirement.
- Breaking your budget – You may find a trip to the Caribbean or a new Chevy enticing, but were they a part of your original budget? Just like your working years, you’ll also need to have a budget and stick to it during retirement especially when you don’t expect to work. It’s key to have an understanding of what your monthly expenses look like versus what income is flowing in. Sure, there might be some wiggle room, but you’ll want to take account of unexpected expenses and emergencies that may arise. Do you have an emergency savings fund and are you aware of the rise in healthcare costs?
- Taking Social Security too early – Many retirees collect their benefits as early as age 62, but the benefit amount you’ll receive is 30% less than what you’d receive at full retirement age. Every year you wait after full retirement age, your benefit increases by 8%. For maximum benefits, you may hold off until age 70.1 And when Social Security benefits aren’t enough to meet your needs or to support your lifestyle, you may want to consider an annuity for supplemental income.
- Letting yourself be bored – Finding happiness in retirement isn’t all about numbers, it’s also about your mental wellness. If you find yourself with nothing to do, it may lead to boredom and ultimately, depression. Fill up your days adequately with new activities such as volunteering a local organization, checking out the new spots in town, working on projects you didn’t get to before, finding a new hobby, or simply catching up with friends.
Start off your golden years on the right foot. You certainly have earned it. Contact us and we’ll work with you to map out your course to help ensure satisfaction and happiness in retirement.
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[1] https://www.ssa.gov/OACT/COLA/Benefits.html