When planning for retirement, we typically focus on things like asset allocation, 401(k) performance, Social Security and the like. However, there are many nonfinancial aspects to preparing for this exciting phase that can greatly impact your quality of life. Here are some tips and strategies for a happy, healthy and well-rounded retirement.
Full retirement age (FRA) for Social Security benefits is currently between 66 and 67, depending on when you were born. Benefits are determined based on your 35 highest years of earning on record with the Social Security Administration, but will be higher or lower depending on when you file. If you file at FRA, you’ll get your full monthly benefit.
If you thought that retirement started at 65 for most Americans, think again — according to a recent Gallup poll, the average reported retirement age for currently retired Americans is 61. And according to the Centers for Disease Control and Prevention, a person who has made it to their early 60s can, on average, expect to live another 23.3 years.
The arrival of spring has brought warmer weather, longer days, a renewal of life … and the yearly desire to clean out and get organized. It’s also the perfect time to get your financial house in order. Here are some housekeeping tasks you can tackle to help make sure you and your money are headed the right way in the year ahead.
Today’s retirees are finding that retirement requires at least as much psychological and emotional preparation as it does financial preparation. So, retirement planning needs to include a thorough assessment of human assets and liabilities along with an assessment of financial assets and liabilities.
Congratulations! Your hard work and contributions at the office have been recognized and you’ve earned yourself a raise. You might be tempted to start spending it right away, but this is probably a bad idea. Be cautious about raising your budget and lifestyle in a permanent way after getting a raise — it can make it harder to get ahead over the long term.
Regrets can be hard to live with: I wish I hadn’t eaten that banana split; I wish I’d bought that sweater when it was on sale; or I wish I learned to speak French. But these are all mild regrets compared to what you’d feel if you didn’t make the best choices for you and your family when preparing for retirement.