Be Prepared-Are You Ready for Retirement?

Retirement is an exceptional reward for years of dedicated work. Each individual's retirement experience is unique. Have you considered what your retirement might look like?

Financial Readiness

Many people delay retirement due to concerns about financial preparedness. While this may be true for some, it is not the case for most. It is essential to evaluate your current budget, anticipate how your budget might change upon retirement, and consider your potential post-retirement income.

Consulting with a financial professional will assist you in exploring all possibilities. For example:

·       Do you aim to be mortgage-free?

·       Do you intend to pay off other debts?

·       What expenditures will cease once you retire?

·       What is your desired post-retirement income?

·       How will your medical coverage change after retirement?

·       What will taxes look like post-retirement?

·       When will social security benefits commence?

Once these considerations are addressed, you will likely feel more confident about retiring comfortably and enjoying this well-deserved phase of life.

Personal Experience

My career primarily involved working for one employer over 43 years. Fortunately, I was employed by a company that provided an excellent pension and a 401(k) matching program. My husband, a licensed contractor and electrician, was self-employed. Our primary sources of retirement income were my pension and 401(k) savings, supplemented by social security.

While establishing our budget and desired income, we felt assured that we could retire comfortably and pursue our hobbies and interests.

However, during the first month of retirement, we were surprised to receive half of the anticipated pension payment. This discrepancy was due to doubled life insurance premium deductions required to initiate the payments. Although unexpected, we managed through the first month thanks to our savings.

Additionally, we adjusted to receiving income monthly instead of weekly or bi-weekly, necessitating a revision of our bill-paying schedule.

The final mindset shift involved transitioning from saving for the future to distributing assets. While it remains crucial to save for emergencies, retirement provides the opportunity to enjoy most of your savings.

Post-Retirement Activities

Have you contemplated your activities post-retirement? While planning every day is unnecessary, having a general idea of how you wish to spend your time can enhance enjoyment.

Potential activities include:

·       Pursuing existing hobbies

·       Exploring new hobbies

·       Traveling

·       Part-time work

·       Volunteering

·       Continuing education

·       Missionary work

·       Starting a new business venture

Consider experimenting with new hobbies, travel options, or acquiring necessary items for expanding current interests before retiring.

Personal Experience

My husband and I have various shared and individual hobbies. Fond of the outdoors, we often vacationed at state parks to explore nature. So, one year prior to retirement, we bought a small camper and figured out how to thoroughly enjoy camping and exploring the United States in our home away from home.   We learned valuable lessons, such as:

·       Additional equipment requirements

·       Preparing for unexpected issues

·       Preferred camping foods

·       Optimal locations for refueling with a trailer

Watch for a future blog titled "Be Prepared – Camping 101" for further camping tips.

I now have ample time to indulge in my love for cooking, baking, and decorating royal icing cookies for holidays. I also enjoy crafting and creating personalized cards using a Cricut machine.

Gardening is another passion.  I have expanded the perennials in our flower gardens and enjoy nurturing them and watching them multiply each year.  There is such satisfaction at sitting in the mulch, pulling weeds and admiring the beauty of the various species of flowers and plants.

Believe it or not, my husband and I really enjoy exercise.  It is so important as we age to maintain our flexibility, mobility, balance and stamina, and exercise is a great way to do this.  We love to hike, ruck, walk, ride bikes and do yoga.  We exercise 5 days a week and take two days off. 

Last year, I established a small business, PEPbinders, LLC, combining my desire to help people with providing resources for organizing personal and financial affairs to better enjoy retirement. More information is available at PEPbinder.com.

Retirement Evolution

Just as your career evolved, so too will your retirement. Adaptability is key; the most important aspect is waking up each day excited for what lies ahead, irrespective of plans.

One constant over six years has been our favorite day: Sunday. No longer preparing for a workweek, Sundays are now purely a day of leisure and enjoyment.