4 Steps to Planning Your Transition to Retirement
Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Money may not buy long-term happiness, but it can provide you with opportunities you may not have without it. If you have planned properly, you will have many options open to you during retirement —you can work and continue to earn an income, or you can volunteer your time free of charge. But if you have planned poorly, you may not have any choice but to go back to work.
Assuming your retirement planning has gone smoothly and you are ready to make the transition to an enjoyable retirement lifestyle, there are a few things to think about that may help you move from the workforce into retirement. Transition is never easy, but you can make it a little more manageable and much more enjoyable if you take some time to map out the life you want to live in retirement.
1. Assess your current lifestyle
You can usually identify your true priorities by assessing where you are spending your money and your time, so start by writing down three places where you spend the most of each.
After you have completed this exercise, honestly examine those items to determine what you want out of retirement. You might be a grandparent who says that your grandchildren are the most important part of your life, but when you write down where you spend the most money or time, you find that golf is actually at the top of your list.
Consider what this means to you. Do you want to live near your grandchildren so you can see them at a moment’s notice, or would you rather split your time evenly between their home and the golf course? Figuring out where you want to spend your time will help you prioritize, and prioritizing will help you schedule your time, which in turn may help you get used to the retirement lifestyle after years in the workforce.
2. Identify your future goals
Imagine that you had all the money and all the time in the world. Now write down the top three things you would want to spend them on. You might want to take an Alaskan cruise, enroll in a class and learn a new skill, or check something off your bucket list. Once again, be honest with yourself and do some real soul searching—and maybe a little dreaming.
Once you identify what your future goals are, you can plan around them. You may find it’s easier to transition out of the workforce when you realize you’re still working toward a goal.
3. Put your plan in writing
To get from point A (your current situation) to point B (your future goals), it is important to map out the necessary steps you will have to take to get there. List your goals, priorities, and next steps, and revisit them over time to ensure you’re on track.
If you want to take a month-long vacation in Europe but need to set aside the money to do so, write down how much you need to save, how you plan to restrict your spending, and what other steps you need to take to get there. If you want to move to a new home in retirement, think about what you’ll do with your current home, whether you’ll rent or buy your new place, and whether you’ll need additional cash to do so. No matter what your goal, having a plan you can reference can keep you on track.
4. Periodically re-evaluate your plans
Over time, priorities and goals change, so you may want to reassess your lifestyle and goals on an annual basis—and adjust your plans to ensure you stay on track as life happens.
Don’t be like most people who fly by the seat of their pants and then wonder why they are frustrated and have no sense of direction. If you are stuck in a rut, things won’t change until you start doing things differently to make those changes happen. With a little planning, you can put yourself on track to a wonderful retirement.
Steve Repak, CFP®, is a professional speaker and the author of Dollars & Uncommon Sense: Basic Training for Your Money.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.