Retirement marks the end of a chapter in your career and the start of a new lifestyle. This unique transition can bring a myriad of emotions, most commonly, excitement and apprehension. If you’re pondering retiring in the next year or so, here are five tips to help you transition smoothly.
1) Know the transition could take weeks — or even months. You likely spent decades forming a routine around your work schedule. Establishing your new normal of volunteer work, an encore career or helping family will take time. If you are married, remember that your retired status may affect your spouse’s routine, too. Talk openly about how you’re feeling during the transition to keep your spouse in the loop.
2) Communicate your retirement plans with family members. Your parents, kids or other family members will likely be interested in how you intend to spend your retirement days. Will you be visiting the grandkids more often? Will you continue to host family get-togethers? Are you planning to move or purchase a retirement home? As you share your plans, don’t forget to discuss your financial picture. The benefits of open communication are three-fold:
• It reassures your kids that you’re financially prepared;
• allows you to introduce or remind your family of your estate and legacy plans;
• and establishes a safe space for both sides to discuss potentially challenging financial topics.
3) Maintain healthy habits. Staying diligent with the activities that help you feel your best is important as you shift into retirement. Prioritize eating healthy, sleeping well, staying fit and maintaining friendships in your new routine.
4) Evaluate your finances. Prior to retirement, you likely outlined how you will manage your cash flow. (If not, today is the day to put a plan in place!) As you enter retirement, review your expenses to ensure they’re aligned with your plan. It’s common to revise your spending and activities after experiencing the first few weeks away from your primary job, so it’s okay if you need to adjust how much you withdraw from your accounts each month. If you want to increase your spending, calculate what that means for your later retirement years, as you don’t want your savings to come up short. Consult a financial advisor for guidance on how to make your money last while living the lifestyle you desire.
5) Reset your attitude. Retirement is not the ultimate finish line. Experiencing a lot of emotions is common, but try to focus on what you’re excited about in this next chapter. And remember, you’re not alone. Talk to friends, family and professionals in your life for support along the way.
MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | firstname.lastname@example.org
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 38 years. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial Services, LLC. Member FINRA and SIPC.© 2023 Ameriprise Financial, Inc. All rights reserved.