3 Serious Things To Do After retiring
After a working lifetime of hustles and bustles, you might be looking forward to things to do after retiring, a lot more unstructured time once you retire. But taking care of one more to-do list early on can set you up for a better post-working life. Assumes already did some basic financial planning before you retiring, you will create a budget, decide when to claim claim Social Security, settle on a sustainable withdrawal rate from your retirement funds and figure out how you will cover healthcare expenses. After your plan is in place, it’s about time you take a critical look at the various important things to do after retiring. Read also 3 Key Steps To Becoming Financially Independent For Early Retirement
What To Do In Post-Work To Control Your Financial Security
When you are planning for your retirement, it’s necessary to put your finances in order to avoid being dumbfounded with unexpected risks. Even though there are m numbers of post-work risks including the earlier-than-anticipated death of a spouse, a lengthy illness, stock market volatility, a bankrupt pension plan and even unplanned-for longevity, these are risks that can upend the most carefully-laid retirement plans. As you live longer and in some cases, given incentives or forced to retire earlier, the risk of outliving your savings grows significantly higher. And the more the retirement period grows, the harder it may be to be certain about the adequacy of your assets. Below are things to do after retiring to uphold the risks ahead and their potential impact on your financial security as well. Read also 8 Most Essential Things You Need To Know Before Retirement
Things To Do After Retiring From Work
1. Adjust your spending plan
One of the most important things to do after retiring is to look for ways to tweak your spending. Inflation and volatile markets can be problematic for anyone, but they are particularly dangerous to retirees. If you are not earning an income, you can’t ask for a raise to compensate for rising prices. Meanwhile, bad markets early in retirement can dramatically increase the chances of running short of money.
The best way to cope is to identify discretionary expenditure that you can cut down spending. Cutting down expenses can help you offset inflation, but it can also help you ride out bad markets as well.
At the normal circumstances, retirees used to be encouraged to withdraw a certain percentage of their investments the first year in about 4%, which was a popular figure and increase the withdrawal by the amount of inflation each year. However, research shows that people are less likely to run short of money if they forgo that inflationary increase when markets return less than 5% within a year. Read also 21 Woeful Budgeting Mistakes To Avoid Right Now
2. Get a Good Tax Advice/Plan
Also on things to do after retiring, many people’s tax situations change when they transition into retirement and they may have unique opportunities to manage their tax bills. People who saves well, for instance, could find themselves in a higher tax bracket at age around 72, when required minimum withdrawals from retirement accounts starts typically. In some cases, it can make sense to do partial Roth conversions in your 60’s to spread out and reduce that tax bill. You should consider getting a tax pro or financial planner. They can help you determine whether conversions are a good idea and if so, how much to convert each year to avoid triggering a higher tax bracket or Medicare surcharges. Read also Financial Goals You Need to Achieve In Ghana Before Age 40
Again, another way to reduce your tax bill if you have more money than you need is to donate to charities directly from your IRA. So-called qualified charitable distributions can start at age 70 ½. Even if you are not well grounded in cash, your taxes may be higher than you expect. Most retirement income including Social Security, pension payouts and retirement fund withdrawals are potentially taxable. If you don’t have taxes withheld from these payments, you may need to file and pay estimated quarterly taxes to avoid being penalized. Read also 20 Creative Strategies To Save Money In Daily Life – The Smart Guide To Gain Control Of Your Financial Future
3. Tend to your health
One of the most important things to do after retiring is tending to your health. More often, preventable diseases cut lives short or limit what people can do in retirement. Consider investing some of your newly free hours in maintaining or improving your physical health.
A medical checkup with your doctor can help you identify any conditions that need treatment, get up-to-date on immunizations and determine what screenings you should schedule. You also can discuss how to start or increase an exercise plan. It is recommended to have about 150 minutes of moderate exercise including brisk walking every week, and at least two weekly sessions of muscle-strengthening activities for all adults. People aged 65 and beyond should add balance exercises such as standing on one foot. Read also How To Practically Reward Yourself With Ten Percent Paycheck Savings Every Month
Your mental and emotional health are important as well. The people who struggle the most in retirement are often the ones who don’t have a plan for replacing some of the rewarding aspects of work, including a sense of purpose, structure and social interaction. Social isolation can reduce both life expectancy and happiness, so consider ways to connect with other people through social engagements, volunteer work or other activities. More so, cut yourself some slack, retirement will have its challenges as well as rewards and you may need some time to get used to this new phase of life. Be kind to yourself because it’s a big transition of life. Read also The Definitive Guide To Choosing The Best High Interest Bearing Savings Account