5 Ways to Make the Most of Retirement
By: Source: AARP Bulletin Today Date Posted: 2003-07-01 12:02:19
Planning for a rewarding retirement should focus on finances and ways to make your later years most satisfying. These five strategies can start you on the right road:
1. Calculate your financial needs. Experts say you'll need 70 to 80 percent of current income to maintain your standard of living—far more than most people plan for; many people also underestimate future health care costs. The website www.choosetosave.org, sponsored by the Employee Benefit Research Institute, has links to more than 100 online calculators to help you assess financial needs.
2. Map a financial plan. Social Security, pensions, 401(k)-type plans, IRAs, health insurance, annuities, personal investments, jobs (full or part time) and starting a business all can help make your retirement secure. But you need a plan to get from here to there. Visit AARP.org's Financial Planning section for useful tips.
3. Reflect on your goals. Think about things that excite you that you might pursue in retirement. Be realistic about your strengths and weaknesses. Then lay out steps to reach these goals. The website www.2young2retire.com is packed with ideas on how to "reinvent retirement."
4. Experiment and explore. If, for example, you're thinking of living elsewhere in retirement, take a long vacation there to make sure the locale suits you. Take classes. Do research. Talk to people who've done it—whatever your "it" may be.
5. Be flexible. Be willing to try new things. If a new direction isn't panning out, don't be afraid to change course. Take some time after retiring to consider new activities, but don't wait too long. Experts say it's good to embark on any new venture before two years are up and other habits set in.
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