Most people nearing retirement hope to enjoy a second act where they can explore and experiment with all life has to offer beyond the working world. Retirement affords ample free time to spend however we choose. Pressures to make a living and raise a family are typically behind us. This time will truly belong to us.
But retirement might not turn out quite as rosy as you hoped. Even if you did your part by meticulously building your nest egg to assure a comfortable retirement lifestyle, sometimes reality is not quite what we expect. Here are a few problematic scenarios to beware of as you endeavor to keep your hard-earned retirement on the right track.
Retire too early. Some people strive to retire at incredibly early ages. But even if your job is a disaster, abandoning the working world at 35 is not right for most of us. The amount of money it will take to support yourself for an additional 20 or 30 years is huge. Even with a conservative lifestyle watching every penny, it’s incredibly difficult to save a sufficient nest egg by the early age of 35 or 40. While the idea of escaping a stressful job as soon as possible is appealing, you might end up retiring too early, which could unnecessarily put you in precarious financial straits. Plus, what will you do to occupy yourself during all those extra years? Many retirees find themselves fighting boredom during a 15-year retirement. With double that time span the challenge to stay engaged and excited increases proportionately. Once the initial honeymoon period of retirement is over, what is the plan for the long future ahead?
Retire too late. On the flip side, some people aim to stay on the job as long as they can.There are certainly some people who enjoy their career so much they feel no need to escape. But for most of us our job is a means to an end. It pays the bills so we can enjoy our time off. If retirement is a time when you hope to try new things, travel and pursue interests forced to the back burner while working, you don’t want to make the mistake of waiting too long. Your energy and stamina will likely diminish the longer you delay retirement. For example, visiting an exotic location is more doable at 65 than at 85. If you wait too long you may miss your best chance to enjoy your second act while you are most able to do so.
Retire without a plan. Many people put more time into planning for a one-week vacation than they do for their retirement. It is a mistake to hope retirement will take care of itself. It’s important to have a plan for how you will spend your time in your second act. Helpful strategies that can improve your odds of retirement success include taking a trial retirement to see how well prepared you really are, developing interests before you retire that you can continue in the future, discussing with your spouse how you each envision the retirement you will live together and examining potential areas to volunteer if you are so inclined. Waiting until after you retire to decide which activities to pursue limits your ability to make modifications ahead of time that could make the transition into retirement smoother.
Retire to escape. Surviving a grueling career can take a toll. It is no surprise that some people look to retirement as an escape from a tiring and tedious working world. Rather than striving to make the most of their new freedom, they surrender into retirement. Retirees who are worn out from the working world might prefer to assume a passive role and watch the world go by. There are certainly retirees who begin their second act physically and mentally exhausted. But retirement provides a chance to leave the past behind and create a future custom fitted to your personal preferences and desires. Retirement is a once in a lifetime opportunity to spend our days doing what we want rather than what we are required to do. Instead of escaping from work, retirement is the beginning of a second act where you get to decide what to do each day.
Dave Bernard blogs at Retirement-Only The Beginning.
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