By Steve Giles
Retirement is a monumental transition. It’s not just about stopping work: It’s about creating a meaningful new chapter. For many, retirement is an opportunity to redefine how they live.
After decades of advising and witnessing retirements, I’ve distilled some essential recommendations for new and soon-to-be retirees to help them make the most of the passage. (I’ve included links to more information.)
1. Be strategic with spending and income.
Financial planning is key. Include:
- A clear retirement budget that separates essential expenses — like housing, health care and groceries — from discretionary incidentals, such as travel, dining and hobbies. (Why I’m budgeting for retirement)
- A decision on when it’s best for you to begin receiving Social Security. (Claiming Social Security: Sooner or later?)
- A sustainable withdrawal strategy, such as the 4% rule, designed to help your savings last as long as you need them. (Retirement spending: Safe rates)
- Tax planning. Coordinating withdrawals from taxable, tax-deferred and Roth accounts can help minimize what you owe in taxes each year. (Deciding which retirement accounts to tap)
Some retirees also consider downsizing or relocating to a lower-cost area to reduce expenses and simplify life.
2. Prioritize health and wellness.
Good health is the foundation of a good retirement. It can help you control costly medical expenses while also allowing you to enjoy yourself better.
Staying active through regular physical activity — whether it’s walking, swimming, golf or yoga — can support both physical and mental well-being. It’s also important to keep up with medical checkups, understand your Medicare coverage and focus on preventive care.
And retirement is an opportune time to adopt healthier eating habits and address any lingering health concerns you might have put off during your working years. (Taking care of both health and wealth)
3. Structure your days with purpose.
One of the biggest adjustments in retirement is establishing a new daily routine. Without the structure of a work schedule, some retirees feel adrift. Finding meaningful ways to spend your time — whether through hobbies, community involvement or learning — can strengthen your sense of purpose.
Consider digging deeper into activities you’ve always enjoyed, or try something new like painting, writing or woodworking. Volunteering, mentoring and part-time work can provide fulfillment and chances to stay engaged mentally and socially. (It pays to volunteer in retirement)
4. Explore travel and bucket-list experiences.
Whether it’s going to places you’ve always dreamed of, revisiting special locations from your past or discovering hidden gems closer to home, travel experiences can add joy and purpose to your retirement years. (A glimpse at retirement down the road)
You don’t need to break the bank. In retirement, you can afford the time for off-season travel, road trips, cruises and senior group tours. Many retirees plan one big trip a year and mix in smaller, more spontaneous getaways in between.
If travel isn’t your passion, your bucket list might include learning a new language, attending a major event or trying something adventurous like skydiving or learning to sail.
5. Stay connected socially.
Social interaction is as beneficial in retirement as it is during your working years. Whether it’s maintaining friendships, joining clubs, taking classes or staying active in your community, making an effort to connect with others helps combat loneliness and supports mental well-being.
Retirement also affords you more family time. Many retirees find joy in spending time with grandchildren and strengthening relationships with loved ones.
6. Keep growing.
Retirement doesn’t have to mean slowing down. It can entail growing in new directions. You can take classes, explore new interests, share your expertise through consulting or teaching. Lifelong learning and contributing to the success of others can be rewarding. (How to Retire: A book review)
7. Plan for the legacy you want to leave.
Lastly, make sure your estate plan is current. Having an up-to-date will, power of attorney and healthcare directive is essential. Review your beneficiaries. It’s also helpful to simplify your financial life — consolidate accounts where appropriate and leave clear instructions for your heirs. (Kids: Take my advice. See my advisor)
Retirement also provides opportunities to give back financially through charitable giving. You can make a lasting impact through a donor-advised fund or other philanthropic strategy. (How investors can be generous and wise)
Supporting your transition
Retirement is not the end of the road — it’s the beginning of a new direction. With thoughtful planning and a sense of purpose, you can create a retirement lifestyle that’s both financially sustainable and personally fulfilling.
Investment advisors aren’t life coaches, but our experience makes us good sounding boards when you’re crafting your retirement strategy — from budgeting to travel planning to legacy decisions. We’re here to support you every step of the way. (Retirement 101: Having a plan)
Steve Giles is senior vice president and an investment advisor at Landaas & Company, LLC.