We boomers were never average. As the “me” generation, our uniqueness is a badge of honor. However, approximately 10,000 of us transition to retirement everyday. And, while we each have specific goals, ideas and financial circumstances, there are some things that apply to us all.
Here is some exceptional retirement advice advice for the average guy, gal or duo.
1. Get the Big Universal Decisions Right
As you transition to retirement, almost everyone will make a lot of critical decisions including: When to stop working? When to start Social Security? Where should you retire? And more…
Be thoughtful about your choices and try out different scenarios — especially if you do not have significant savings. These decisions can have a dramatic impact on your quality of life in retirement:
- Delaying the start of Social Security can add almost $100,000 to your bottom line.
- Working a little longer is a triple treat: 1) You earn more income for a longer period of time. 2) You can save more. 3) You can delay tapping existing savings.
- Where will you retire? If you own a home, it could save your retirement. Consider if and how you might tap into your home equity.
2. Tiptoe into Retirement Instead of Jumping Right In
Retiring used to be a big event with parties and gifts and an abrupt end of work and the beginning of a lot of free time. However, these days more and more people are switching to retirement jobs or working part time before they quit the labor force entirely.
Other ways people tiptoe into retirement include:
- Taking a long vacation or sabbatical to recharge instead of retiring.
- Trying out (renting in or spending time at) a retirement destination, before packing up and moving.
- Making sure you can live on the budget you need to stick to in retirement.