As the leading edge of Gen X and the youngest Baby Boomers approach retirement, many are pondering what life will look like after they leave the workforce. Some are hearing stories from retirees and wondering how they will navigate this new stage of life. One retired individual, Dan, expressed feeling overwhelmed by the amount of free time retirement brought, noting that finding new activities to fill his days became a full-time job.
Unlike other major life purchases, retirement is a unique experience that cannot easily be tested or tried out before making the decision. While people can test drive cars, tour homes, or sample wedding venues before making a purchase, retiring requires a leap of faith into the unknown. It is considered one of the largest purchases an individual will make in their lifetime, with substantial financial and emotional considerations.
Research suggests that couples approaching retirement should have saved between seven to eight times their annual salary to retire comfortably. This means that for the average American couple in their 60s making $120,000 annually, they should have saved between $840,000 and $960,000 for retirement. Saving such a significant amount requires discipline and sacrifices given that retirement is an uncertain future that cannot be fully experienced before making the commitment.
Preparing for retirement goes beyond financial security and requires a thoughtful plan to ensure that individuals are both financially and emotionally ready for this new chapter in life. To help individuals get a sense of what retirement might be like, there are several strategies that can be employed. These include starting retirement shopping early, living on a fixed retirement income, spending more time at home if planning to age-in-place, connecting with groups related to hobbies, and traveling to different destinations to experience retirement living.
Connecting with retirees who are already living the lifestyle one envisions can provide valuable insights and advice for planning and preparing for retirement. By learning about their experiences, challenges, and successes, individuals can make informed decisions about their own retirement. However, it’s important to remember that admitting to a bad retirement decision might not be easy, so it’s helpful to have open and honest conversations with others who have already transitioned into retirement.
