Full-time retirement is a major life transition that brings changes affecting not only the retiree but their family and friends. You will no longer be working at your 9-5 job, you may have a lower income and what you have known as normal will be completely altered. If you prepare in advance retirement can be a smooth transition which won’t cause as much disruption for you or your family. If you managed to create enough income to live on, the next thing you should do is prepare your family for your retirement.
Careful Planning
Preparing for retirement requires careful planning to make sure you can continue to live the lifestyle you have now. Hopefully, you planned this out ahead of time and saved enough money to carry you through your retirement. If you didn’t do it beforehand, you can start now by checking how much money you have saved and determine how you can set aside more of your income to put in your 401(K), an IRA or savings account. You may also have income from social security which you can include as well. Hopefully, all of your accounts combined should give you enough for your living expenses and a little more. If you need more help you should consult with a financial advisor.
Where Will You Live?
The idea of full-time retirement is to stop working so you will be free to pursue your passions. Where you will live is a major decision and moving to a new location can have a negative effect on you and your family if you don’t prepare in advance. Many people decide to retire to a warm climate like Florida or Arizona where they can enjoy the outdoors year around. Other retirees choose to move to other countries that have a lower cost of living like Mexico, Costa Rica or the Philippines. They find their retirement income provides for a higher standard of living than they could afford in the US. Whether you decide to stay in your current home or relocate it is a major life change. If you decide to relocate, you should speak with your family and let them know of your desire. Family members can be very supportive and can offer helpful advice.
Family Gatherings
What does your family do if you have always hosted the family gatherings and holidays but you are no longer able to or living close by? I have watched families that lost their close connection because the matriarch/patriarch no longer facilitated family gatherings. You don’t want your family relationships to be entirely reliant on you. If you are the one who has been hosting family gatherings you will slowly want to start including other family members in the planning, cooking and hosting. You could take turns hosting celebrations and relieve some of the stress on you.
Create New Family Traditions
Many people often see their families only during the holidays. It is important to create new traditions as a way to keep people together. You can get ideas from social media, Pinterest boards, and from other internet avenues. Ask family members to look too and come up with creative ideas for spending time together on a regular basis. Backyard BBQ’s, picnics in the park, special events, and monthly potluck dinners allow all members of the family to participate from the youngest to the oldest.
Budgeting
When you stop working, your income may be reduced so it is a good idea to begin limiting your spending before you retire. You can begin practicing for retirement by cutting back on the things you no longer see as a necessity. You may be in the habit of starting every morning with a Mocha Frappuccino from the coffee shop, but you could start making coffee at home. Creating new habits will slowly ease your family into the understanding that you are wanting to stick to a responsible budget.
Eating Out
Many people who are getting ready to retire often cut out restaurant meals to save money. You don’t necessarily need to do this. Limit the number of times you eat out per month and plan out your meals taking advantage of discounts. You still need that social time with your spouse or your family and friends. If you are in the habit of picking up the check, you can ask everyone to pitch in for their meals or ask the server for separate checks. Starting this habit before your retire can help save you extra money you can use later.
Contributions for Education
If you have been giving your children or grandchildren money for college tuition, books or spending cash, you should consider limiting this to what is absolutely necessary. You will need to let them know that when you retire you won’t have as much disposable income. Birthday gifts can be more sentimental and designated to their favorite passions or hobbies. Limit expensive gifts to special occasions.
Providing Financial Support
As a retiree people assume you have a lot of money saved up and they might ask you to help provide them with financial support. You may be asked to contribute financially for a major purchase like a car or a new home. I recommend you don’t cosign on a loan for anyone, including family, but if you feel you must, make sure that the loan will be paid off before the day you retire. You don’t want this to come back to haunt you at a time when you are living on retirement funds. To pay the loan off quicker, make an agreement that the person requesting the loan will pay it off with income from a job and they will keep working a job for the duration of the loan. If they don’t show any willingness to help work off the loan, then you should decline the proposition.
Create a New Social Network
Besides friends and family, you will need to have people you talk to on a regular basis. Loneliness is a major drawback of retirement. Get interested in something you can do online like joining a forum on a subject you’re interested in like sailing, camping, or RV travel. Find chat rooms related to your favorite sporting teams or hobbies. The idea is to engage with other people daily to keep from feelings of isolation.
Summary
Whether you retire part-time or wait until full retirement, start preparing yourself and your family now for the changes that will be coming. Making the transition as smooth as possible means you will have the most success and maintain good family relationships.