Baby boomers represent the largest population segment in the U.S., with more than 10,000 of them turning 65 every day. Unfortunately, many are financially unprepared, which is why financial planners are recommending boomers test-drive their retirement before they take it.
Here are some things to take into consideration before you retire:
Expenses – many people have no idea what their daily expenses entail. Planners recommend that boomers track their expenses prior to retirement and then make a list of those expenses that will likely follow you into retirement. You should also work off as much debt as possible so you won’t need to spend as much of your nest egg on debt.
Assets – you can’t plan properly until you have a handle on how much you will have to spend in retirement, which means taking stock of all your assets, including retirement plans, pensions, Social Security benefits and personal savings. Do you have enough to cover your expenses?
Emotional needs – if most of your social life revolves around your work, you could become isolated and depressed once you retire. You need to make a plan on how you will replace these social contacts and how you will fill your time once you stop working.
Redefining retirement – boomers are known for redefining themselves, and this shouldn’t stop in retirement. You may want to work part-time or try out a totally different career. While you are still working, take some vacation time off to test-drive your interests and hobbies to get a feel for what life will be like in retirement.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.