How to Get Ready for Retirement
Retirement is the time when we can finally step back from working and focus fully on the joys that life can bring. The goal of retirement is to have either saved up enough or, alternatively have worked enough, to be financially supported so that you don’t have to work another day in your life.
People still stay active, of course. They may finally work on that book they’ve been putting off for years, or they may start to do volunteer work. The point is that they finally have the financial security to focus on doing what they want to do.
This, of course, hinges on one important thing: how much you have saved. Unfortunately, if you don’t go above and beyond for your retirement, you’re likely to struggle when it comes to meeting the bills even with your pension. That’s why you need to start now with these steps:
1. Hire a Financial Planner
The hardest thing to do when it comes to preparing yourself financially is knowing where to start and what to do. This is where a financial planner comes into play. They can help you identify where you can be saving and can even help you understand what to do with those savings to get a better return.
2. Establish Passive Income Streams
Passive income streams are sources of income that you earn without doing anything extra. One of the common opportunities for those nearing their retirement is to rent out their family home. Selling it, of course, will give you a larger chunk of money to play with, but with people living longer and longer, this becomes an increasingly risky option. Instead, you canrent it out. Renting it out and paying for a company to manage it means stress-free income, especially if you’ve paid your property off.
You can then find a smaller place to rent out yourself, or if you have the budget, you can buy a second home for your retirement. Having that rental income will prop up your pension fundand give you more money to work with without divesting yourself of your assets.
3. Establish New Social Habits
The people we talk to at work and the friends we’ve made professionally often take up a huge portion of our social calendar. Once you retire, those social ties are going to be largely restricted. This means you need to take up new hobbies, make new friends, and find new ways to keep yourself busy. You can do this by setting up standing dates with friends and family, organizing trips together, and so on. You can even make new friends by joining clubs, volunteering, or taking courses.
4. Stay Sharp
If you want to feel like yourself for as long as possible, then you need to keep your mind sharp as a tack. The good news is that this is also a good opportunity to meet new people. Consider taking short courses at the local college or university. Learn a new skill. Read regularly. Travel often. Experience more, and do it daily. This will keep your mind actively learning and working, so you can enjoy your time more after retirement.
5. Stay Active
Staying physically active is also important for your health and well-being as you get older. Adopt new habits that will have you out of the house and active on a regular basis. Keep in mind these activities should be joint-friendly. Walking, swimming, and yoga are great things to start with.