You have come at the threshold of your life where you need to bid a goodbye to your work life and enter into the retirement phase. Nobody can anticipate the strong emotions that arise during the time of retirement. There is no need to be scared of entering into retirement life. If properly planned beforehand, this could be the most welcoming change for you. Matthew Davies looks at things to know before your retirement for the smooth transition.
- Pay off your debts – You may have taken loans in the past. It may be for your house, car, kid’s education, medical expenses, etc. As soon as you take any loan, make a chart or plan that helps you to envision how you plan to repay all your debts before you retire. Five years before retirement, it is time to revisit the planner again to ensure that everything is in order. If you can afford it, try to finish the loans before the stipulated period. It is always good to have a couple of years as a debt-free period before you hit retirement.
- Plan your medical expenses – Even though life expectancy is on the rise, the medical expenses are rising each day. You may have planned for these expenses at a young age taking some medical policies but do take note that the rise in medical expenses is greater than inflation. At least sixty percent of retirees say that their medical expenses are at least thirty percent higher than what they had expected. It is always better to be prepared well.
- Part-time work – As the source of income starts drying up, keep a lookout for any part-time work. Take into consideration your interest and choose accordingly. The benefits of part-time work are that it is not exhausting on your health as it demands just a few hours and you are rewarded with some income which is most welcome at this age. You can get into consultation, teaching, designing, or something related to your work life. Today, technology has made it possible to work from home as well.
- Prepare to face any uncertainty – You may feel that you have looked into most of the things before retirement. A wise man is somebody who is ready to face any unexpected situation. You may have any unforeseen medical complications of your spouse, the stock market might crash suddenly, or you may outlive the years that you had unexpected. It is advisable to have a contingency fund for such unexpected events in your life.
- Prepare for the change in your lifestyle – It is best to be psychologically prepared for the drastic change in your life that has to come. You will no longer have colleagues to talk to, deadlines to be met, official gatherings to go to, or any official trip. Do not let these bring you down. Join any interest groups to make you feel lively and plan your quality time with your friends and loved ones.
Matthew Davies feels that you are definitely going to enjoy your retirement life if you follow the tips stated above. It is a new phase in your life that is perfect for self-reflection and spending quality time with your family.