Retirement can be a wonderful thing to look forward to, especially if people have carefully planned their careers and finances beforehand.
But before people even consider leaving the workforce for good, a group of Certified Financial Planners (CFPs) have shared with The Huffington Post five important things to do first before taking the big leap.
"Look before you leap is definitely the mantra," said Eleanor Blayney, Consumer Advocate for the Certified Financial Planner Board of Standards. "Retirement can be a wonderful period of life — a time of tremendous fulfillment and enjoyment, and planning will make your ability to enjoy it so much greater."
The first tip shared is to treat yourself. Paul Wilson of Schwarz Dygos Wheeler Investment Advisors LLC in Minneapolis said people should savour their accomplishment as they look forward to the future they've been dreaming of for years. They could celebrate by buying an expensive bottle of wine, or enjoying a nice dinner.
The next day, they could take a special vacation trip. Anja Luesink of Luesink Stenstorm Financial in New York City said having a vacation to look forward to will make it easier to transition from work to retirement.
Next, Cameron Hendricks of Financial Symmetry in Raleigh, North Carolina said people should review their income streams. "Make sure you have your cash flow in order," he said. "Know how much income you will have and where it will come from (pension, social security, retirement accounts, part-time job)."
After which, they should start tracking their new daily expenses. People who are no longer working will experience a huge shift in their expenditures. "I tell new retirees that it can take a year or two to adjust to retirement and really know what you will spend on average," said Cheryl Sherrard of Clearview Wealth Management in Charlotte, North Carolina, "and you need to know what your retirement income can support, even in bad market years."
Fourth, people should revise their estate plan as well as update their will, insurance beneficiaries, medical directive, and power of attorney. "Chances are you haven't looked at your will in years, perhaps decades. Your adult children likely wouldn't appreciate having a guardian anymore," said Wilson.
Lastly, retirees should fill their calendars with meaningful activities. A lot of individuals find themselves at a lost after retiring, so it's best to figure out what to do with one's free time. "Find your passion," urged Sherrard. "I've seen too many individuals retire 'from' something and not 'to' something. While it takes everyone time to get used to retirement, you have to find a reason to get up in the morning, whether it is volunteering, gardening, finding a part-time gig, etc."
