According to the Retirement Industry Trust Association, the expected retirement age for current workers is 64. Two in five workers say it will take a miracle for them to be financially secure in retirement.
If you count yourself among the millions of Americans planning to retire in the next few years, do you have a plan? Prior to turning in your resignation notice, optimal timing is key to starting and maintaining your retirement.
We asked financial experts to share their tips to help near-retirees decide when to make the leap to retirement. These steps will prepare you emotionally and financially to help ensure a smooth transition into the golden years.
If you’re still working and want to retire soon, try easing into the transition by reducing your work from full-time to half-time for a few years, then down to 25% for a few more years. Then, keep it at that level or stop altogether, as you prefer.
Find something you enjoy doing that you can do for a long time that brings in at least some money. This will keep you active, reduce the size portfolio you need, and/or increase how much you can spend in retirement, and it may let you leave a larger bequest to your kids or a favorite charity.
It’s vital not to get too carried away at the outset of retirement and spend too much of your savings. Monitoring and planning your budget must continually be done so you can always keep an eye out for any setbacks or unexpected costs that arise.
Financial experts agree that near-retirees consider finding something they enjoy doing in retirement, especially in the first years after a full-time career. And don’t overlook preparation for taxes and healthcare expenses to ensure a smooth transition into retirement.