Retirement is a major milestone and rite of passage in our lives. For the vast majority of our life, you’ve been working every week, year after year. If you are looking at retiring at age 65, it’s likely that you’ve been employed full-time for some 40 plus years in total. The very rhythm of your existence has been built around constant work, and so many of your social interactions are found in that world too.
Leaving the life of daily employment behind is a monumental change. While being on a job has been hard at times, there’s also a sense of camaraderie that people miss when they retire. It’s important to spend time thinking of what you now want to create. With time no longer an issue, you are free to pick up dreams you may have left behind and design this new chapter of your life. As you approach your retirement date, there are some important things you’ll want to consider.
Downsizing May Give You More Freedom
One of the areas that you’ll want to look at as you approach retirement is your overall lifestyle. Most people accumulate a lot of things, get bigger houses and have a more lavish lifestyle during their working years. That’s only natural, as there is often a family to raise and we all like to reward ourselves for all the hard work we do.
With retirement, though, you may find that having a big house and a lot of things to take care of just takes away from your leisure time. If you want to do a lot of traveling and exploring, or want more time for fun activities, it might make more sense to sell your big home and generate even more income for your retirement dreams.
Pick the Right Medicare Plan
Typically, enrollment in Medicare comes when you turn 65. There’s a period of several months before your birth date and several months afterward when you can sign up for the coverage. The standard Medicare coverage, known as Parts A and B, is only part of the picture though.
While Medicare offers basic coverage, it’s important to know that it will only pay for around 80% of your medical services. You’d be left to pay the rest of the costs yourself, and that might leave you exposed to costs of up to $25,000. You’ll want to talk to a medicare expert about Medicare supplement plans that are available to help make sure you get the full coverage you need.
Create Your Retirement Budget
When you retire, you have a completely different mix of income and expenses than you had during your working years. The steady flow of money from one or two breadwinners will soon be replaced by money from your pension and Social Security benefits. You may also find that a part-time job could be necessary to boost your income.
You’ll want to really take a good look at your income and ongoing expenses too. Every time you make a decision to reduce your monthly expenditures, you’ll be able to relax more and begin really enjoying your retirement years.
