For someone on the cusp of retiring or even the person who has started to save and has a plan of how and when they want to quit working for good, they realize that saving, planning and knowing their goals is the key to avoiding one of the more dark and ominous potential pitfalls of anyone who eventually does retire.
They have to go back to work.
While that isn’t always the worst thing in the world, you would assume that someone who retires at 55 or 75 isn’t interested in doing a second tour, an encore performance where they find themselves looking high and low for some sort of income because that retirement plan that had so much potential now is hardly prudent whatsoever.
In fact, if you’re pinning a name tag on your smock or starting to pack that briefcase up again, you could easily refer to it as a failure. But there is a way to win over retirement to make it a one and done proposition.
You could assume that simply saving and then spending smart once retirement comes is the most easy and obvious way to do so. For some, retirement and the money saved turns into a “let’s spend and spend and travel and travel more” to the tune of blowing through a good chunk of what you’ve been saving since you started working three or four decades ago.
You have to be smart with spending as retirement is not a free for all, spending spree.
Others aren’t the type that can be working a 40 hour per week schedule one week and then stop completely. Beyond the not knowing what to do with yourself, that group knows that a little income rolling in beyond your retirement isn’t necessarily a bad idea. Perhaps the place of business where you’ve worked would be interested in having you for 20 hours instead of 40, and you can keep money coming in but yet still be able to retire relatively speaking.
You also can’t discount two other post retirement moves that make sense: downsize your home and keep the same budget skills that got your to retirement in the first place. The downsize part is easy; you can benefit from the sale of your house and the equity and perhaps rent or move somewhere that is both easier to take care of money wise (i.e. you’re not responsible for fixes to the dwelling) and is less rent wise.
You can’t overlook that budgeting doesn’t end when retirement begins. You can truly make your money last longer if you treat your retirement and the funds as nothing more than an extension of a paycheck, the same one you managed so well before officially retiring.
Previous: Smart Decisions: How technology is taking hold of your finances Next: Pay Checkmate: How to stop living from one pay period to the next