Start planning for life after retirement now

Posted on 05/16/2022

After years of hard work, retirement is a relaxing period that everyone deserves. However, many associate it with the uncertainty of not having a regular income. This can trigger stress and anxiety about maintaining their pre-retirement lifestyle. But it doesn’t have to be so stressful. All you need to do is think ahead and set your future goals.

Retirement is an inevitable phase of life. It can be a peaceful and joyous experience if you have a retirement plan that aligns with your goals. Retirement planning also accounts for your financial well-being and takes care of your future needs. It can also help you get through emergencies or health issues along the way.

Picture the best life you can lead after retirement — whether you pursue your hobbies, spend time with loved ones, travel, or simply relax. With the right financial planning and enough savings, you can achieve all this and enjoy your ideal post-retirement life.

Focus on the importance of life planning after retirement. Here are five essential tips to help you through it.

5 Tips To Plan Your Life After Retirement

Retirement is a big change. It comes with challenges like a lack of stable income and possible lifestyle changes. Planning for life after retirement can help you stay prepared and overcome such challenges. The following tips can help you ease into retirement and have a peaceful life as a retiree.

1. Set Your Retirement Goals and Budget

According to a 2021 survey by the Employee Benefit Research Institute, 28% of Americans feel financially ready for retirement. So along with setting goals, you must consider your budget and financial goals. Over the long and short term, your retirement goals can include anything from leisure, pursuing studies, starting a new business, buying a house, or traveling the world. Budgeting will help you understand what your life will be like after retirement.

Your retirement budget can include daily expenses, along with costs for housing, medical, travel, and so on. But, it must account for inflation or an increase in prices in the future.

2. Start Financial Planning by Saving

Finance experts suggest that your retirement income should be 55% to 80% of your pre-retirement income to have a comfortable lifestyle. You’ll need a lot of savings and financial security to live the retired life you desire.

You can increase savings for your retirement funds by investing in the following:

  • 401(k) plans, which are retirement accounts offered to employees by a company
  • Cash-value life insurance plans
  • High-yield savings account
  • Individual retirement account (IRA)
  • Medicare and health savings accounts (HSA) for health expenses
  • Mutual funds and exchange-traded funds
  • Retirement funds like simplified employee pension (SEP) plans
  • Stocks, bonds, and assets like gold

If this is all new to you, consult a financial planner to help you make better investment decisions. They'll help you strategize your goals over the long and short term and plan your finances for your desired lifestyle.

3. Learn About Your Social Security Benefits

You are entitled to your Social Security retirement benefits as early as age 62. However, you will start receiving 100% benefits once you reach your full retirement age. Retirement benefits are estimated as your average monthly income over the 35 years in which you earned the most.

You can start claiming benefits by age 62. But this will reduce the amount you can claim with time. If you don’t claim your benefits from your full retirement age to age 70 years, the amount you can claim increases by 8% per year. Consult your financial advisor for the right time to claim your social security benefits.

4. Prioritize Your Well-Being

Your health should be your top priority after retirement. Take care of your health by exercising and getting regular health check-ups. For your mental well-being, identify what gives you happiness, hope, and a purpose in life like a hobby or part-time job.

Ensure that you have a healthcare plan to cover medical costs during retirement. Setting up an HSA can offer a safety net for healthcare expenses post-retirement.

5. Prioritize Your Needs and Wants

Retirement doesn’t mean giving up on your lifestyle. With proper financial security, you can achieve cost-effective and comfortable living.

After retirement, you may wish to relocate or travel. You may also choose to downsize or move to a luxury retirement community like those offered by LivGenerations. That’s why your retirement plan must account for all your needs.

Monthly budgeting can help you establish your expenses and identify any gaps in your savings and goals.

The Bottom Line

Life after retirement can be exciting. With a retirement plan, you’ll have more time to explore new opportunities. The importance of life planning after retirement is that you’ll have the financial freedom to live a comfortable, peaceful life. You can then achieve your goals and enjoy your retirement where you want.

If you’re looking for luxurious independent living without compromising your quality of life, LivGenerations’ retirement community is the ideal place for you.