- Start saving for retirement as early as possible.
- Create a retirement fund and invest in potential income streams.
- Make a bucket list to stay motivated and engaged.
- Take care of your health by maintaining physical and mental activity.
- Explore your passions and enjoy life on your terms.
Retirement is a time to enjoy life, and with more years in retirement than ever, it’s essential to make the most of this period. According to The Transamerica Center for Retirement Studies, people aged 65 today are projected to live an average of 19 years in retirement – two years longer than previous generations! This means you have plenty of time to travel, stay active, pursue hobbies and passions, or relax.
However, preparations will be necessary before retiring. A survey by Prudential Retirement found that for those in the workforce, only 39% are saving enough to achieve their retirement goals. Here are some steps you can take to make sure you’re ready for your retirement:
Create a Retirement Savings Fund
Saving for retirement should be a priority. Depending on your age and earning capacity, the amount you can save will vary. However, creating a dedicated fund to store your retirement savings is essential.
Your regular income may not always be enough to maintain your lifestyle when you retire, so it’s essential to start saving as early as possible. You can set up a 401(k) through your employer or open an IRA (Individual Retirement Account). Both of these are tax-advantaged accounts that allow you to save money pre-tax or post-tax, depending on the rules of each account. Additionally, you can look into other investment options, such as stocks, bonds, and mutual funds, if you’re looking for more capital growth opportunities.
Investing in potential income streams that will last throughout retirement will also be necessary. Annuities, for example, are contracts between you and an insurance company in which the company promises to make periodic payments to you for a specified period.
Build a Bucket List
A bucket list is a list of experiences or accomplishments that someone wants to achieve in their lifetime. It’s called a “bucket list” because it’s often made up of things people want to do before they “kick the bucket.” While many people create these lists to motivate themselves to live life to the fullest, they can also benefit those approaching retirement age.
Retirement can be an exciting and fulfilling time, but it can also come with challenges. For example, retirees may find themselves with more free time than they know what to do with or struggling to find new sources of purpose and meaning in their lives. A bucket list can help alleviate these issues by giving retirees something to look forward to and work towards for the rest of their life.
Here are a few goals to consider for your retirement bucket list:
Take a big trip around the world
Traveling is one of the first activities many people think of when making a retirement bucket list. Whether for two weeks or six months, traveling can be an incredibly enriching experience that allows you to explore new places and meet new people.
Start a business or side hustle
Retirement might mean you are no longer, but it doesn’t mean you have to stop working! Starting a business or side hustle can be a great way to stay active and bring in some extra income. This can give you a sense of purpose while allowing you to explore new interests and develop your skill set.
Invest in real estate
If you have money to spare, you can invest in real estate. Investing in rental properties or flipping houses can be lucrative and often comes with tax benefits.
Bond more with your family
Retirement gives you time to spend with your family and reconnect with those who matter most. Whether visiting them more often or setting aside time for weekly video chats, it can be a great way to deepen relationships with your loved ones.
These are just a few activities you can add to your retirement bucket list. Ultimately, the list should be tailored to your individual needs and interests!
Take Care of Your Health
The importance of taking care of your health cannot be overstated, especially during retirement. A healthy lifestyle leads to increased energy and productivity and helps boost our immune system, allowing us to fight off diseases more easily.
Retirees need to maintain their physical health as well as their mental health. Mental exercise is just as important as physical activity. This can be achieved through learning new skills, practicing mindfulness or meditation, reading books, doing puzzles, or taking classes. Additionally, retirees should take advantage of the healthcare services available to them and ensure they have a reliable healthcare plan.
Unfortunately, you might be retiring with a terminal condition that could limit your activities. In this case, it’s essential to research and find out what services are available to you that can help you make the most of your remaining years. Hospice care services at home might be an option if you cannot leave your house.
Retirement is an excellent opportunity to explore your passions and enjoy life on your terms. Whether traveling, starting a business, or investing in real estate, it’s essential to make the most out of this period by setting goals and taking the necessary steps to achieve them. Also, don’t forget to take care of your mental and physical health, which will help you stay active throughout retirement! With the proper planning and preparation, you can ensure that your retirement years are filled with joy and fulfillment.