Retirement may be the time you have been waiting for since the first day you started your job. As exciting as this milestone can be, it can be equally as overwhelming. It can be difficult to navigate retirement once this huge chapter of your life ends. 1+1 Cares is here to give you the rundown of things your loved one should know about retirement so they can make the most of this new era in their life.
While retirement may be one of the biggest financial endeavors of one’s life, financial planning can overshadow other aspects your loved one should consider. How will they spend their time in retirement? What goals do they want to accomplish? On their first day of retirement, they’re not going to be thinking about how much they saved, they’re going to be thinking “now what?”.
People often have the misled assumption that retirement puts you in the category of either working or not working. However, if you have entered retirement and are no longer working your original 9 to 5 job that doesn’t mean you can no longer gain a source of income. AARP states more than 20% of people aged over 65 are either working or looking for work as of February 2019. This is almost double the rate of 12% in 1999. Sometimes working again isn’t for financial reasons, most seniors in retirement develop a side hustle or start working again for social interaction and to pursue their passion.
While retirement can provide the much-needed break for your mental and physical health, some people expect this time to be a magic pill for their health. However, to have good health as a senior, you have to prioritize healthy habits as early as you can. This means maintaining a balanced diet and staying active well before your retirement starts.
There’s no way to know if you have saved enough money because there will always be something to spend on. Once your loved one enters retirement they might get carried away with their savings since there are endless endeavors that would cause them to overspend. It is common for first-year retirees to overspend, so how can you solve this? While there’s no way to know if they have saved enough, you can assist your loved one in financial planning and adapting good spending habits to save them from innocently blowing their retirement fund.
Your loved one can overspend their savings not just by ordering everything on their wishlist, but also by being faced with an unexpected turn of events. For example, if there is an earthquake and they need home repairs, a big chuck can go out of their savings. So while years of saving and intricate planning are useful, you must be aware no plan usually survives its first contact. You can prepare for this type of situation by identifying potential surprises as part of your retirement plan.
Working with a professional financial planner can ease stress and nerves. They can simplify the process by being the assistance and guidance your loved one would need to figure out what they already have and build a strategy for what they need.
Money may feel like everything when it comes to planning for retirement. However, many seniors say during their retirement the use of time is worth more than the money. Use this new source of time wisely and live it to the fullest!
Many seniors are surprised by the taxes they face when they start retirement. If you have half a million in your 401k plan, you could be hit with a 30% to 40% tax. Tax planning and strategizing during your loved one’s retirement planning can help them avoid the sudden panic.
Managing relationships is a huge part of retirement people are unaware of. Retirement can cause less social interaction and an abundance of free time, so maintaining connections with family and friends can prevent loneliness and boredom.
As stated previously, it is common to have the feeling of boredom and restlessness with this new source of free time. Besides financial planning, consider finding a purpose and forming goals of what you want to accomplish because it can make the retirement experience much more enjoyable.
Your loved one may be having uneasy feelings about entering their days of retirement. As overwhelming and scary as this time can feel, it’s exciting! Planning for retirement can hide the overall fact that they have the opportunity to find themselves again and live their life to the fullest.
1+1 Cares is a referral agency that works for clients and caregivers. We match caregivers with clients and inform them of your requirements. We work for you so you and your loved one can have a safe, enjoyable caregiving experience.
1+1 Cares by serving as a family’s caregiving concierge. 1+1 Cares is a unique platform that synergizes premium service, qualified caregivers, and affordable rates. By empowering families to make the right decisions, 1+1 Cares makes in-home care affordable and accessible. 1+1 Cares about you.
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