Anticipating Retirement
There is one question that stands out in the minds of every single person anticipating retirement – Will I Have Enough Money to Manage My Expenses and Maintain My Life Style?
Retirement is almost certain to mean for most of us living on a reduced or fixed income. A reduced or fixed income does not mean a reduction in expenses, although that would be the preferable scenario.
- Also Read: FEHB and Medicare Coordination Tips That Could Save Federal Retirees Serious Money
- Also Read: Why Civilian Military Employees Are Starting to Rethink Traditional Retirement Planning
- Also Read: Social Security Strategies Federal Employees Can Use to Make Retirement a Lot Smoother
In addition, we also introduced tips to getting our house in order to retire well. We discussed best dates to retire, the impact of sick and annual leave on retirement, and a simple formula for estimating income amongst a menu of diverse topics relevant to federal employees.
Baby boomers face challenges in retirement that many of their parents never did. Specifically, when most of our parents retired after 30 years of work, so did the mortgage. A large number of baby boomers will most likely take a fairly hefty mortgage into retirement. Therefore, we must be smarter than ever about handling our finances and living on a reduced or fixed income.
The last years prior to retirement, particularly the last 5 to 10 years, should be spent paying down debt, not accumulating debt. We should strive to take as little debt as possible into retirement. Consideration should be given to paying off high interest debts first, followed by debts with low interest and then getting rid of nagging expenses that carry a small balance. Consider a campaign with a time horizon to pay them off.
Paying off your mortgage at once would be wonderful if you had the disposal income to do it. But for some, perhaps it is not so wonderful because of tax considerations and write-offs. As for credit cards, you cannot be tempted to use them if your don’t have them in your wallet when strolling through a mall. People who work in marketing spend many hours finding ways to get us to open our wallets and spend our money. We can’t blame them, they are doing their jobs and doing them well.
Overall by beginning to consciously make a realistic list of wants versus needs and prioritizing needs over wants will help reduce debts going into retirement and post retirement. There are many challenges facing retirees, but having a plan when anticipating retirement makes these challenges easier to overcome. There are also many opportunities for implementing strategies that can help you retire well and live in comfort and security.
P. S. Always Remember to Share What You Know.
