In this article we will talk about the first two stages of retirement.
Gearing Up
The first of five stages of retirement is Gearing Up. If you are retired you are past this step, but the knowledge is still important. It might serve as a validation that you did some stuff right. It may give you an idea of something you could still do.
Gearing up for retirement is the time from when you decide you want to retire until you actually do retire. There are several crucial things you need to evaluate before you give up your current job. If you don’t, you may discover you did not plan correctly. You might find yourself struggling financially.
A good first step in pre-retirement planning is to try living on your anticipated retirement income before you retire. For several months, attempt to live on only what income you would get from your Social Security and any planned withdrawals from your retirement accounts. Coming up short means you may want to delay retirement or figure out ways to cut expenses.
Along with financial planning, gearing up for retirement should also include emotional planning. Make sure you have fun and find purpose in this stage of your life. Don’t just retire from something, retire to something. Think of activities that will make you happy and fulfilled while you transition into retirement. By doing so, you can have a better transition to retirement. This is the time to make any other lifestyle decisions. Consider downsizing, new interests, adopting healthful practices and then fine tune everything.
This can also be a time for worry and doubt, especially in the year or two before retirement.
Ask yourself these questions:
What do you want to do after retiring? Work another job, part time, or volunteer. How will you spend your free time? Hobbies? Travel?
Do you have a mortgage and should you pay it off? Do you have enough money set aside? Where do you want to live? What family obligations do you have?
Cheering Up
The second of the five stages of retirement is Cheering Up. This is full retirement or the honeymoon phase. It begins at the official beginning of retirement and can last from one to two years after retirement.
This liberation phase includes feelings of excitement, relief, and freedom from the stress and responsibilities of your day-to-day working life. You suddenly have much more free time, you may take a trip or two to places you’ve always wanted to go, and you may start that hobby or spend more time with friends and family.
This sudden freedom is the time to put things in motion for the rest of your retirement. You can try new activities and enjoy old favorites you never had the time for while you were working. You can also set aside time for yourself and make time for social interactions so you can still reap the benefits of having a strong social support network. Consider joining AARP. Building relationships in retirement, along with making the most of your existing relationships is as important as exercise for your physical and mental health.
During your retirement, plan activities that will help you stay healthy for longer. You can enjoy your retirement to the fullest, be able to spend time with your grandkids, and remain independent with good physical and mental health.
Your best transition course is to begin to find your routine. Wake up each morning with a plan or ideas for the day doing activities from before retirement and assimilating new activities. Understanding all five stages of retirement will help you before you retire, when you retire and after you retire. You may want to read the next article in this series, Stages of Retirement III.
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