Working toward retirement can be like moving toward a light at the end of a tunnel. Many Americans spend decades saving for retirement, but don’t have an actual plan for once they retire. Whether you are looking to travel more, pick up a new hobby, start a part time-job or just spend time relaxing with family, your lifestyle changes when you enter retirement.
Here is a breakdown of how your retirement lifestyle may differ from your current lifestyle, and how to better navigate the transition:
Set Goals
Before you reach retirement, it is important to set personal and financial goals for the future. Start by envisioning your ideal retirement lifestyle. Maybe you would like to buy a new house, travel the world, or make the large purchase that you’ve been saving for. Maybe you are looking to downsize your home instead, or simply spend your free time with your loved ones. Whether you expect to spend more or less money in retirement, these goals can help determine if you need to change your current lifestyle in order to achieve your future one.
Consider Adjusting Your Savings
Once you reach retirement, your life inevitably changes, most notably because your income will no longer be coming from a job, but rather from your retirement savings or from Social Security. If you are looking to spend more money in retirement or reduce your monthly expenses once you get there, you can adjust your current lifestyle.
One easy way to figure out the changes you may need to make, is using the Emerj360 retirement calculator. Using your personal financial data—like your current retirement savings and contributions—the calculator estimates the amount of money you will have month-to-month during retirement. You can use this estimation to either increase or decrease how much you are contributing to your retirement savings.
Other ways you can change your current lifestyle include paying off your debt, re-evaluating your investment portfolio, sticking to a budget, and maximizing your contributions to a 401(k) or Individual Retirement Account (IRA). These changes will pay off during retirement, as they will decrease your monthly expenses and grant you more freedom to spend your money later on.
Stay Busy, Stay Relaxed
The most significant change between your lifestyle now and your lifestyle during retirement? Going to work.
After spending the majority of your life going to a job every day, retirement can provide much needed time for rest, and grants you more free time to spend time with family and friends. However, gaining this free time can be a difficult transition for many. If you think you will have a hard time adjusting to retirement life, make a plan. For example, if you feel you want to stay busy during retirement, find a part-time job. Not only will that keep you busy, it will also provide you with extra income. You can also consider volunteering at a non-profit, at a school or within a religious organization. Volunteering will provide a great way to give back to the community, and helps you stay active in retirement. Many individuals also take up a hobby or budget time to travel as well. No matter how you choose to spend your time, have an idea of what you will do in retirement.
Consult a Professional
You don’t have to plan for your future lifestyle alone. Our financial professionals at Emerj360 can work with you to not only help you retire, but to also plan for what comes after. You can schedule an initial consultation online, or call 1-833-637-5360. A financial professional will work with you to create a financial plan, help you navigate investments and your retirement savings, and overall help you work toward retiring comfortably.
