Choosing How to Spend Retirement
Although you may be years away from retirement, you can still take action. You begin planning financially for retirement years in advance, so planning what you will do with your time is just as important.
4 min readWhether you are eager you are to start your next adventure or uncertain if you will be able to fill your hours, retirement is a big change in your life. After your last day of work, you will enter a new lifestyle. Before you officially retire and jump into a new schedule or commit yourself to new activities, it may be wise to take some time to plan and try out aspects of your retirement lifestyle. You may learn that you prefer a boat to an RV or your grandkids to new neighbors.
Start planning
Although you may be years away from retirement, you can still take action and begin thinking about what kind of retirement lifestyle you want and can reasonably afford. You begin planning financially for retirement years in advance, so planning what you will do with your time is just as important. Consider all areas of retirement, for example, where you will live, what you plan to do, and how you will live within your budget. Determining how you will spend your time will also help planning how much you will need to save.
Consider short and long term
When planning for your retirement, consider both the short term and long term. This gives you room to experience the lifestyle and make adjustments as needed. You may like to go hiking, but after 2 to 5 years, will you have had your fill? Having some shorter term and longer term activities also gives you the liberty to explore different options. Be sure to consider your finances as well as any physical conditions or health considerations that may arise. For example, activities that require strenuous physical activity may be better planned earlier in your retirement, particularly if you have any health conditions.
Talk with your family
If you have a spouse or partner, will he or she be retiring at the same age or continue to work? What is his or her vision for retirement and how will it work with yours? Many couples discover they have different perspectives. Anticipate differing opinions and negotiate a compromise that you both can live with.
You might also wish to discuss your plans with other family members. You may all have different assumptions, so express clearly what your expectations are and what they can expect from you.
Where will you live?
Where do you want to live? Some retirees relocate near family or choose a different environment. You may be dreaming of a home in the desert, on the coast, or in the mountains, but you might find that your vision doesn’t quite match reality. Before committing to a new home, consider trying out the area by visiting at different times during the year. If you have visited during the peak touring season and only seen your potential locale at its best, try to visit at other times.
You might also need to consider the access to health care and other services. Although it may sound ideal to live in a quiet, rural location, see where clinics or hospitals are located as you may become more dependent upon them as you age.
What will you do?
- What are your goals for retirement? Be as specific as you can. For example, instead of listing “travel more,” write “tour of Europe” or instead of “visit family” write “see my grandchildren twice a month.” It’s okay if you don’t have specific goals in mind yet, but try to start thinking in detail about what you’d like to accomplish.
Are there any new hobbies or activities that you would like to explore? Consider taking some introductory classes to get a feel for your interests before fully investing time, money, and energy to a hobby. You might find that it isn’t as exciting or as fulfilling as you thought.
Retirement does not always mean that you must stop working entirely. Some retirees also choose to continue working part-time or even to find work in a different field.
Staying as active as you can and doing activities you enjoy throughout retirement is not only enjoyable, but helps us age well. Participating in hobbies and other activities may help provide socialization and improve overall wellbeing.
Can you live within your budget?
Living on a fixed budget may be a new experience for you. You might wish to practice living for a month or two within the limits that your retirement plan allows to see if your budget is reasonable for your needs. Can you maintain your desired lifestyle under this budget? Will it allow you take the trips you planned or pay for your activities? Keep in mind that you may have more medical costs as you age. Will you have enough savings for unexpected expenses such as car or home repairs? If you find that your budget can’t accommodate your desired lifestyle, you will need to reassess some of your decisions. You may wish to explore other options, such as working part-time during retirement, delaying retirement, or saving more now. If you are able, working with a financial advisor might be helpful.
Enjoy retirement
Many retirees note that retirement offers a newfound freedom to explore activities or places. At times, the freedom may be overwhelming, but with a little planning and practice, you can find what works best for you.
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Sources:
AARP. Ten Steps to Get You Ready for Retirement. Accessed June 8, 2022. 10 Steps to Get Ready for Retirement - Financial Planning (aarp.org) Opens in a new window
AARP. Top 25 Part-Time Jobs for Retirees. Accessed June 8, 2022. Top 25 Part-Time Jobs for Retirees (aarp.org) Opens in a new window
National Institute on Aging. Participating in Activities You Enjoy—More Than Just Fun and Games. Accessed June 8, 2022. Participating in Activities You Enjoy As You Age | National Institute on Aging (nih.gov) Opens in a new window
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