Are you part of the baby boomers generation (born between 1946 and 1964)? This 2013 the oldest baby boomers turn 67 and the big question all over town is if baby boomers are already ready for retirement?
Here are some tips on planning for your retirement:
1. I’m sure some of you aren’t totally ready to give up working yet. If you still enjoy some aspects of your job, it is best to consider shifting to part-time or consulting work instead of pursuing a full-time life of leisure. Having a modified schedule can help you enjoy a less stressful life without totally giving up the fulfillment that you feel when working and engaging in the business that you’re in.
2. Prepare yourself psychologically and emotionally. The prestige and power that your work gives is not easy to let go, that’s why you have to prepare yourself that things will change once you retire and someone from your work will have to take your position.
3. Have a plan on what you want to do after retiring. Do you want to be able to do tennis or golf? Do you want to open a new business? Plan the new identity that you want for yourself, whether its a life of leisure or other passion that you want to pursue, you have to decide which path to take. This is the time for you to open yourself to new possibilities and not see it as closing of doors. If there are things that you wanted to do before but you can’t, now is the time to do it.
4. Of course you have to be prepared financially. Get those debts paid off, so that it won’t cut your retirement budget.
5. Make sure you’re vested in your workplace retirement plan and are contributing enough to get a 401(k) match. Know the date which you can keep all of your benefits, there are some cases where in you have to stick around for a few extra months or years to get a bigger retirement payout.
6. Know what fees are being deducted from your 401(k). If your funds aren’t delivering enough value to be worth the cost, consider switching to investments with lower fees.
7. Check your Social Security record, and make note of how much you will receive from Social Security and plan on when to take it. The later you start, the bigger the benefits but strategize also on the right time that you can still fully enjoy your benefits.
8. Sign-up for Medicare, you can do this three months before you turn 65.
9. Plan a post-retirement budget and try to live off that budget for a few months before you retire. This will help you decide whether your budget is realistic. Genworth Financial offers an interactive tool to help you plan for and afford the retirement you want.