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When to retire, what retirement looks like, and how to start planning for it
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To retire or not to retire, that is the question. Aside from the obvious matters, like whether or not you have the funds to wave goodbye to your job, it’s also important to consider the emotional questions. After all, your job is a huge part of your life, and moving on from it is a big decision. We’ll give you the top 7 emotional signs that you’ve got one foot out the door. We’ll also fill you in on the stages of retirement and offer helpful tips on how to get ready for it, so that you enter this new phase of your life prepared.
Things You Should Know
- You’re probably ready to retire if you’ve stopped enjoying your current job, find that it no longer gives you the passion it once did, or feel behind in the industry.
- Take a cue from friends or family who tell you that it’s time to retire, and also don’t ignore that gut feeling that has you daydreaming of adventures outside of work.
- Prepare for retirement by saving 10% of each paycheck and planning hobbies, travels, or volunteer efforts that will give you some post-work purpose.
Steps
Section 2 of 3:
Stages of Retirement
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Imagination This is the months or even years leading up to retirement, when you’re busy working to save up for post-work life and planning what that life looks like. [8] X Research source Will you be sitting on an Italian patio sipping espresso? Buying a villa in a mountain town? Retirement isn’t yet your priority, but you know it’s coming down the road, and the thought of what it looks like excites you.
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Anticipation Retirement is just around the corner, and you’re in full planning mode. [9] X Research source Do you have enough saved up? What will your post-work day-to-day look like? How will you settle in? There’s plenty of anxiety, and plenty more excitement. Just a few more years, months, or even weeks before you’re let loose!
- During this stage, you may find that it’s hard to focus on work, or that you’re distracted by the thought of retirement. You might ask your boss for fewer responsibilities as your prepare to depart from your career.
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Freedom Retirement! You’ve had your office going-away party , sent thank-you cards for the retirement gifts, and now your calendar is opened up before you. Your days are yours to do with what you will, and you’re on something of a honeymoon period with your retirement. Now’s the time to jump into those new hobbies or hop on a plane to explore all those places you dreamed of. [10] X Research source
- This stage often occurs after the age of 62, when you’re eligible to receive Social Security benefits.
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Adjustment The explosive excitement of retirement has died down a bit, and now you’re learning to adjust to retirement and navigate the nuances of post-work life. You’re focused on making sure your finances are in order and sustainable, and communicating with your family about your life’s new pace. [11] X Research source Also called “early retirement,” this stage often happens around age 70.
- During this stage, some retirees experience disorientation or even depression—they find that their job provided purpose, and now they have to find a new purpose. The feeling is usually temporary though; it just takes a bit of time to find your new groove.
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Mid- and late-retirement Some years after 70, you’ve gotten a hang of this whole retirement business, and you’re living your best, work-free life. Ideally, your finances are stable, your assets are ready to be divvied up, and you’ve found hobbies or activities to take up your time. [12] X Research source Then, late retirement comes knocking, and you’re living out you’re golden years surrounded by family and friends.
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Section 3 of 3:
Getting Ready to Retire
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Get your finances in order so you have enough to live on. It’s not the most thrilling part of retirement, but you’ll need some savings if you plan to cut your income. In the years leading up to retirement, consider hiring an accountant, who can fill you in on what it’ll take to get your money right, including saving, investing, and taking advantage of Social Security. [13] X Research source
- Also, ask your employer about your retirement or pension plan. Your HR or accounting department is able to fill you in on your benefits and what you need to know. [14] X Trustworthy Source US Department of Labor Federal department responsible for promoting the wellbeing of workers Go to source
- In addition, start saving now! Put 10% of each paycheck into a retirement savings account, if you can. Some experts say you need 70-90% of your pre-retirement income in your post-retirement years in order to stay comfortable.
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Plan to find your purpose in volunteering or other pursuits. For many, their job is their reason to get up in the morning. But after they ditch their job, that reason tends to vanish, and retirees are challenged to find other pursuits to fill their time and stay busy after retirement . Many turn to volunteering as a way to give back to their community. Some volunteer at food banks, schools, or nonprofit organizations like the Peace Corp.
- Alternatively, plan to take classes to hone your skills in hobbies like woodworking, or just pursue those hobbies independently. Now’s the time to take up painting so you can leave behind a legacy of masterworks!
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Make a list of leisure activities you want to experience. Of course, retirement isn’t all finances and finding your purpose. You’ve waited all these years to let loose and have fun, so have fun! Host parties or potlucks, hit the beach, or wile away a day (or several) by the pool. Write down everything you want to do bucket-list style, so that when the time comes, you’re armed and ready for leisure.
- In addition, consider traveling to new countries , joining a local retirees’ social club to meet other people enjoying life after work, or just catching up on all those books and magazines you never got around to reading.
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References
- ↑ https://www.psychologytoday.com/us/blog/cutting-edge-leadership/201104/at-what-age-should-you-retire
- ↑ https://www.psychologytoday.com/us/blog/cutting-edge-leadership/201104/at-what-age-should-you-retire
- ↑ https://www.psychologytoday.com/us/blog/how-to-do-life/201601/planning-for-your-retirement-a-checklist
- ↑ https://www.psychologytoday.com/us/blog/how-to-do-life/201601/planning-for-your-retirement-a-checklist
- ↑ https://www.psychologytoday.com/us/blog/how-do-life/202108/dealing-the-fear-retirement
- ↑ https://www.psychologytoday.com/us/blog/cutting-edge-leadership/201104/at-what-age-should-you-retire
- ↑ https://www.psychologytoday.com/us/blog/how-to-do-life/201407/should-you-retire
- ↑ https://www.forbes.com/sites/bernardkrooks/2011/02/16/the-five-phases-of-retirement-planning/?sh=3cb16792641e
- ↑ https://www.forbes.com/sites/bernardkrooks/2011/02/16/the-five-phases-of-retirement-planning/?sh=3cb16792641e
- ↑ https://smartasset.com/retirement/5-stages-of-retirement
- ↑ https://www.forbes.com/sites/bernardkrooks/2011/02/16/the-five-phases-of-retirement-planning/?sh=3cb16792641e
- ↑ https://www.forbes.com/sites/bernardkrooks/2011/02/16/the-five-phases-of-retirement-planning/?sh=3cb16792641e
- ↑ https://www.psychologytoday.com/us/blog/how-do-life/202105/how-plan-retirement
- ↑ https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement.pdf
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