Many near-retirees don’t have a budget in place. Without that key piece of financial planning, it can be difficult to understand whether you’ve saved enough money to see you through your retirement years comfortably.
Typically, housing takes up one-third of your income in retirement. Understanding your sources of income, whether they are from investments or Social Security or both is crucial. It’s easy to let discretionary spending get out of control in retirement if you don’t have a solid plan for your money.
Bob Powell says that one very important aspect of retirement is to identify what you’ll do with your free time in retirement. Without a full-time job, filling the time could present challenges. It’s smart to have goals. Decide which things you most look forward to in retirement and make those activities a priority. Some retirees prefer to have a part-time job or a consulting job with flexible hours so they can stay connected to the working world.
Even a solid retirement plan can’t predict things like the death of a spouse or a major health event. Bad investment advice can present unforeseen challenges, as well. It’s important to have a support system in place to help you navigate unexpected problems in retirement.
