At least a year or two before you actually retire, it is a good idea to start practicing and check how to prepare for retirement. Like a dress rehearsal. The gradual transition will help you to adjust to the new lifestyle and help you recognize if you are really ready to retire.
Here are some tips about how to prepare for retirement:
Spend according to your future retirement income:
A great way to prepare for retirement is to start living according to how much money you will have once you retire. You can practice budgeting in line with how much money you are going to have available to spend each month. You should put the additional money into a savings account and live off the amount you are going to have. That way, you start getting used to having a smaller income, while helping you save. It will also help you decide if you are in fact financially ready to retire.
Take more vacations:
You can start practicing what it is like to have more time on your hands by taking more of your vacation time. This might include vacations abroad, but also vacations at home, so you can simulate what it will be like when you are retired and what things you like to do with your spare time. At work, it will help your colleagues get accustomed to not having you around so much.
Start or rekindle hobbies:
One of the great benefits of retirement is being able to do all of those things you never have time to do when you are working, like your hobbies. Start preparing for your hobbies once again and buy any of the expensive tools necessary before you retire while you still have a full income.
Buy a vacation home:
If you are considering that you would like to live abroad or move location after your retirement, start the procedure before you retire. You might decide to purchase a vacation home or rent long-term in the location where you are considering moving. This will help you to start a new life in these places and develop a friend network before you actually retire. Fractional ownership is a great option if you are still some years away from retirement.
Spend quality time with your other half:
If you will be retiring at the same time as your spouse, begin to rekindle the romance before retirement. Start having date nights, weekend getaways and attend more social gatherings together to start building the foundation for spending a lot more time in each other’s company.
Buy expensive items now:
Purchasing expensive items that you will need during retirement is best to do before you retire. Taking out credit to purchase a camper van or vacation home should be done while you still have a full income. You can then see how well you will cope with the repayments on your retirement budget.
Read more information on how to prepare for retirement in the following articles: