For many individuals, retirement represents the freedom that you never had while part of the workforce. You may feel like you haven’t traveled enough, or that you finally want to renovate your whole house because you’ll be there more often. But don’t jump on your spending spree right away. This is one major mistake that many retirees often make that leads them to returning to the workforce after retirement. To avoid this mistake, consider these important factors you need to think about when you’re starting your retirement planning process.
What does your budget currently look like?
One of the first things you need to do before you even retire is to examine what your current budget looks like. How much do you pay for living expenses? What are your current healthcare costs? How much do you spend on entertainment each month? How about food? These are exceptionally important questions to answer to have an idea of how much money you need each month to sustain your current standard of living.
How is your budget going to change?
Next, you need to examine how your budget will change when you retire. Will you be spending more on heathcare? Do you want more “fun” money? Will you still have to pay your mortgage payment? These questions will help you figure out how to start to plan for retirement and not outlive your investments and savings. Once you retire, it will be a big adjustment to be able to learn how much money you will need each month simply to sustain your standard of living, let alone add in any large purchases.
Planning for retirement can be challenging but it doesn’t have to be with the expertise that Income for Life provides. Schedule a free retirement planning consultation today to help you get on the right retirement track. Call today!