5 Keys to Being Fit to Retire
Submitted by JMB Financial Managers on July 16th, 2021
How do you know if you’re ready to retire? This is a difficult question, and the answer varies person by person. Before deciding you’re ready for retirement, make sure you evaluate your entire situation including mental, physical, and financial readiness.
The 5 most important areas to assess when deciding on retirement readiness are:
- Self-Identity
- Social Interaction
- Health and Fitness
- Personal Relationships
- Financial Security
Let’s take a look at each of these in more detail.
Self-Identity
Do you define yourself based on your profession? After decades of work and building up your career, it’s natural to feel like your job is part of who you are. This self-identification causes many retirees to feel confused, lost, and even depressed once they’ve left their careers.
When your profession is a major part of how you identify yourself, who are you without it? This is an important question to consider as you plan for retirement. To help yourself with the transition, plan it out before you intend to retire. This may include transitioning to part-time work in your profession for a few years before completely retiring, getting involved in community or social organizations and clubs, investing your time in a new or current hobby, and more.
Having a plan for how to spend your time when you’re not working can help make the transition easier and less mentally distressing.
Social Interaction
Does most of your social interaction revolve around your career or workplace? If so, you will need to expand your social circle and find new groups and communities to spend time with. Ideally, you should start this process a few years before your planned retirement so you can retire with the knowledge that you have a solid social network outside of your coworkers and colleagues.
If you’re unsure where to start looking for new social groups, start by going to community events in your area or find organizations that align with your values and hobbies to join. This can look like joining a community badminton team or going to trivia night at the pub or attending events hosted by a charity you support or even volunteering for charities, nonprofits, or other organizations that you like. There are many ways to meet new people, so go out there and make new friends before leaving your job.
Health and Fitness
Healthcare costs should be a serious consideration when looking to retire. If you are currently being provided health insurance by your employer, that will end with retirement. You need to have enough in your savings to cover your own health insurance if you are not yet eligible for Medicare. Even once you are eligible, you will likely still have some out-of-pocket healthcare expenses that you need to be financially prepared for. If you’re looking to learn more about Medicare, review our free guide Let’s Talk Medicare.
Keeping yourself fit and active in retirement is important not only for your physical health, but for your mental well-being as well. Exercising reduces stress and staying active will make your retirement more enjoyable because you’ll be able to do more. Plus, joining a group fitness class like yoga, tai chi, spinning, etc. can help you expand your social circle.
Personal Relationships
Retirement can have a bigger impact on the personal relationships in your life than you may think. If you don’t keep yourself physically, mentally, and socially healthy as mentioned above, retiring can put a lot of stress on your relationships, especially those with your family.
Having strong, positive personal relationships is important for your mental and emotional well-being but can have a positive impact on your physical health as well. Healthy relationships with a diverse group of people can relieve stress, provide the human interactions/connections we all need, and give us people to go do all those things on our bucket lists with.
When nurturing your personal relationships during retirement, start closest to home. Take your spouse on a romantic vacation or staycation, spend one-on-one time with your kids and/or grandkids, but be sure to keep in mind they have their own lives too.
Financial Security
With retirement comes the substantial loss of the income you are used to receiving regularly. This is why having a financial plan for retirement in place is so important. Long-term financial planning, starting as early as you can, can be a huge help during your retirement.
Before deciding to retire, make sure you are financially stable, calculate how inflation, healthcare, and any unexpected expenses could impact your finances, create a Social Security plan, decide how you are going to use the funds you withdraw from your retirement account, and make sure you have substantial enough savings to be able to continue your standard of living without your income.
Do you want to make a retirement plan but aren’t sure where to start? Contact a Certified Financial Planner today to receive the assistance and advice you need to create a custom retirement plan that is right for you.
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About the Author
Jack Brkich III, is the president and founder of JMB Financial Managers. A Certified Financial Planner, Jack is a trusted advisor and resource for business owners, individuals, and families. His advice about wealth creation and preservation techniques have appeared in publications including The Los Angeles Times, NASDAQ, Investopedia, and The Wall Street Journal. To learn more visit https://www.jmbfinmgrs.com/.
