Hurry! Life After Retirement is Going to Be Great (Assuming You Are Truly Ready)

You might be nervous about your future but research suggests that you should run – not walk – toward retirement.  Get ready to retire because the best times of your life await you.

Most People Find that Retirement is the Happiest Period of Life

Research from Age Wave and Merrill Lynch found that, of all periods in our life, we are happiest and most content between the ages of 65 and 74.

It’s Best to Be Financially Ready if You Want the Happy Life After Retirement

Another study, this one from the Employee Benefit Research Institute, finds that while most seniors are indeed happy, a higher percentage are feeling more dissatisfied than before.

The percentage of retirees who describe retirement as “very satisfying” dropped from 60.5%  to 48.6% over a 15 year time period.  Experts suspect that the drop in satisfaction may come from either:

• Difficult financial situations
• Lack of direction and purpose in this time of life

8 Questions to Ask If You Want a Happy Ever After… Retirement

1. What do you want to do in retirement?

Retirees seem happiest when they have a passion to pursue or some other specific purpose in their life. Deciding what you want to do after work should be an important part of your retirement planning process.

“Even if you’re financially set to retire, you’re now going to have many years ahead — especially if you’re in your 50s or 60s,” says El Dorado Hills, Calif.-based Scott Draper, a certified financial planner with Thrive Financial Planning. “What is this next stage in your life going to be about?”

“Retirement is a great time to revisit old hobbies and dreams,” says Kate Holmes, founder and principal at Las Vegas, Nevada-based Belmore Financial, LLC.

And some of those passions could even prove to become income generating activities in retirement, she says, noting that a growing number of people pursue new careers in retirement, or dedicate their time to volunteering.

2. Do you have a daily schedule or routine for life after retirement?

Successful retirees have a plan for their days. What you do doesn’t matter as much as having a schedule for doing it.

In retirement, routine is as important as ever. According to Northwestern Medicine, routines help you: sleep better, reduce stress, use your time wisely, fosters better health and just enhances your life because you use your time more mindfully.

3. Are you ready to retire? Who is in your social support network?

After retirement, you will still need social interaction but it can be harder to find.

4. Can you afford retirement? Do you have a written retirement plan?

Your retirement security will hinge on how much income you’ll need and how well you’ll be able to supply it.

Discover what is possible for you by using the Boldin Retirement Planner. This is a comprehensive tool that encourages you to try out as many different strategies as you can imagine. Immediately see the impact of each change on your overall financial health.

You’ll want to get as detailed as possible:

• Plan your budget — both big one time as well as monthly expenditures
• Think about healthcare and this massive out of pocket expense, including what you’ll do if you require long term care. Out of pocket healthcare costs can be expensive in retirement, especially if you retire before Medicare eligibility.
• Figure out how much you will withdraw from savings and when (paying attention to Required Minimum Distributions).
• Will you have a retirement job or passive income and for how long?
• How will your investments change and what will you do in a worst case scenario for the financial markets?
• Are you prepared for different inflation levels?
• What will you do about any debt you are carrying?
• Do you have back up plans and have you anticipated what could go wrong?

5. Have you considered your family?

A retirement plan rarely only impacts one person but too often people plan for everything but their loved ones.  Your spouse is an obvious consideration. However, your children and parents (if they are still living) may impact your finances – positively or negatively.

Family is a huge source of happiness (and sometimes stress).  You’ll want to be prepared for expenses related to your loved ones.

6. Where do you want to live?

Choosing the best place to retire can be a financial decision, lifestyle choice or both.  For most households, housing is the biggest cost and largest asset.  Therefore, where you live can be a significant lever in determining your financial security and happiness.

7. What will give your life after retirement meaning and purpose?

Research from Oxford University suggests that people with a sense of purpose have a 15 percent lower risk of death, compared with those who said they were more or less aimless. And it didn’t seem to matter when people found their direction. It could be in their 20s, 50s or 70s — even when controlled for other factors that affect longevity like age, gender and emotional well-being. The study found that a sense of purpose led to a longer life.

8. Do you need support or a second opinion?

You can’t afford to get retirement wrong. And, you don’t want to waste this era of your life.

You might consider getting financial or emotional support.

Have You Considered Hiring a Financial Advisor?

A financial advisor can look over your finances, make sure you aren’t making mistakes and give you ideas to maximize your wealth and well being. According to Forbes, the biggest mistakes retirees make that could be avoided by using a financial advisor include:

• Lacking a solid financial goal
• Procrastination
• Ignoring tax strategies
• Not knowing how to turn savings into reliable income

The Boldin Retirement Planner can help you truly get ready for wonderful retirement.