Are You Ready to Start the Show?

There’s a lot more to retirement than meets the eye. Before you clock out on your last day, make sure you’re fully prepared to retire!

By John Martin

 

So, you’ve been thinking about retirement. You’ve been working hard and have even reached retirement eligibility with your employer. All the fireworks are lined up, and you’re holding the matchbox in your hand, ready to launch the next stage of your life.

But before you light the fuse, let’s make sure you’re ready to start the show.

The Financial Side

First, make sure you’re financially ready to retire. Tracking your expenses is a great way to get started. Knowing how much you pay for housing, food, entertainment, transportation, healthcare and any other necessities in your day-to-day life will give you a much better idea of how much you need to save before you retire.

After you’ve nailed down your expenses, it’s time to take a look at your income. You can estimate your TCDRS benefit at any time by using our benefit estimate calculator in your TCDRS.org account. Also, make sure to tally up your Social Security benefits and income you would bring in from any other retirement accounts or personal savings earnings.

Some retirees go back to work part-time to give themselves some extra spending money. This can help keep your rainy-day fund dry.

The Emotional Side

Not unlike a firework show, the night gets a lot quieter once the last explosions of sound and color have gone off. Everyone needs a day off once in a while, but what happens when every day is a day off? It’s important to consider if you’re emotionally ready to retire as well.

In general, humans prefer to have a sense of purpose. Jim Yih, a best-selling author at Retire Happy, says that “Successful retirement comes from the harmonization of both lifestyle issues and money issues. As a result, freedom in retirement works best when you have some structure.”

How will you tap into a sense of purpose, stay socially fulfilled and create structure to guide your days in retirement? Many retirees will rekindle old hobbies and or find new ones. Others enjoy spending time with their families and friends, or volunteering in their local community.

Even creating a basic schedule for waking up, mealtimes and activities can help. For more ideas, watch our video.

You still have that matchbox (your TCDRS benefit) with you, right? That one is yours to keep. Whenever you decide to start the show, TCDRS will be with you every step of the way!

Personal Finance