Pre-Retirement Advice

Preparation for retirement takes a lifetime of work, as evidenced by the Social Security practice of using 35 years of employment for calculations. Planning for retirement makes the transition easier, but planning is not just financial planning. Your identity changes, as for many people your employment is who you are -- or were. Adjustments to a new lifestyle and new social interactions are required for retirement years.

Time Frame

• About 10 years before you plan to retire, get your financial affairs in order. This includes paying off the mortgage on the house and payment of credit card debt. Within five years of retirement, purchase a car with payments to end before you retire. You want to be debt-free for retirement as your income will be less than while you were employed.

Considerations

• Decide if you need to downsize or relocate. Evaluate these life changes carefully, as some states tax Social Security benefits or other retirement funds or have high sales tax and property tax.

  Relocation should consider medical needs and proximity to a quality hospital. Getting to the hospital quickly may save your life.

  Social Security will provide only about half your retirement income needs. You will need other income. Social Security recommends pensions, savings and investments to meet the other 50 percent. You might choose to continue to work part-time or work at a profitable hobby.

Potential

• Consider the possibilities with or without your spouse, your best friend or your significant other. Think about where you will be without her, and where you will want to be. Calculate how this affects your income, your lifestyle and your social activities, and make plans. Retirement plans should include the most important person in your life.

  Talk with your children and relatives about your future plans and goals. Ask for input and advice. These are your support staff, and if you share with them before retirement, they will be more a part of your retirement life.

Preparation

• Make decisions about what you want to do for entertainment or for a profitable hobby, and purchase the equipment or accessories before retirement. You may not want to spend the money once you retire, and this may make the difference in living or surviving.

  Set up your hobby in advance to see how it works for you, or if you would like to continue this in your retirement years. You may change your mind, and you have the time, since you started early.

  Give some thought to social activities. Join some organizations if you are inclined to do so. Keep up with friendships so you can have social interaction when you retire.

Effects

• Early preparation creates an easier transition between employment and retirement, as there is adjustment required. Many companies find reasons to cut older employees, and you may retire sooner than you expect. Your health may force you to make changes. Whatever the reason, you need a plan.