Preparing for Retirement

By Johnny Duncan

Retirement signals the beginning of a new lifestyle. For many of us, it is a long awaited relief from working for many years. Unfortunately, when the moment arrives, many retirees are without direction for the new life. They may have studied and sought financial planning advice, but there isn’t too many places to go for “what-do-I-do-now” advice. If retirement is around the corner for you (five years or less), here are some action plan points to consider before the final retirement day arrives.

If you retire at age 65, the traditional retirement age, you're likely to live for 15 to 20 more years, depending on your gender and health. Many people will live longer. Because of this, many who are eligible for retirement are choosing to go back into the workforce. Some go back to work because of financial necessity, but many are doing it because of the need to be productive. A poll released this past April by Bankrate.com states that nearly one out of five Americans plan to work until they die.

Considering what it is that you want to do with your time in the retirement years is one of the priorities to mull over in your non-financial retirement plan. Here in East Orlando, opportunities abound for the seasoned veteran of W.O.R.K. and much can be learned by businesses from the vast experience of retirees.

The next important topic to include in retirement planning is long-term health care. According to a recently released AARP report, most Americans are unaware of the cost of long-term care and overestimate the amount that government programs such as Medicare will pay. The report reveals that by purchasing a long-term care policy, people who exhaust their benefits from the policy can shield an equal value of assets from being "spent down" before Medicaid begins to cover their long-term care needs. This is an important planning step for coverage for both the retirees’ parents as well as for the retirees to lighten the burden on their children.

Another important factor to include in your retirement plan is an honest analysis of your own health and fitness. Are you going to be healthy enough to enjoy the things that you want to do in retirement? If not, now is the time to begin a fitness routine that will continue throughout your lifetime. Be consistent in your routine and make it fun. The fitness activities you engage in now (golf, tennis, swimming, etc.), will also help to fill any voids during your retirement years. You will be better conditioned for becoming a member of a tennis club, entering golf tournaments, or joining a bowling league because of the foundation you are now creating.

In preparing for retirement, if you are not going to continue working, remember to create a routine where possible --- at least in the beginning of your retirement years. After working for 30 to 50 years, your whole being is used to routine. Most retirees experience a sudden stop of life’s activities once they retire and a sense of loss because of not participating in a daily routine. Avoid this by planning the days, weeks, and months ahead. Use a planner and jot down the days and times that you will visit with family members and friends, do volunteer work, and travel.

Once you have your financial plan nailed down, and your action plan in place, plan also to use the retirement time to celebrate a life of productivity. Regardless of your choices of activities during retirement, plan also to give of yourself. Seek opportunities in your family and your community where your wisdom from a long life of working will be beneficial.