The Six Things to Avoid When You Retire
The road to retirement involves a lot of planning. But if you plan appropriately, you’ll be able to relax and enjoy life. However, you have to be careful when making decisions involving your retirement life. If you don’t make wise decisions, you could end up in financial trouble. Here are six things to avoid when you retire.
1. Leading a sedentary lifestyle
Even though it is a time for you to finally relax, you shouldn’t lounge all day. Take some time to get up, go outside, and get some fresh air. Relaxing too much can lead a sedentary lifestyle. This in turn will put you at risk of developing a chronic illness.
2. Lavish spending of your savings
Once it is time to leave work for good, it is important to spend wisely. It is not a good idea to just spend whatever you want, whenever you want. Financial experts recommend withdrawing 3% to 4% from your retirement savings each year. However, this doesn’t work for everyone. Always keep in mind though not to blow through your savings
3.Do not Isolate yourself
Although most people feel very happy and relieved to have more time to themselves, try to make an effort to socialize, so you can reduce your chances of experiencing loneliness and depression. According to Statistics, the likelihood of becoming clinically depressed rises by 40% after retiring. Unfortunately, untreated depression could lead to an untimely death as a result of suicide.
4. Lend money to friends and family
Sometimes in life, things can be going really well, and then the next thing you know a family member’s partner dies, someone loses a job, or some other financial emergency knocks them off their feet. Although you might have concern about them, it is not the best idea to start handing out cash to everyone in need. You have to think about your future and how financially supporting a loved one could affect your own finances.
Although it is good to spend money on yourself every now and then, you have to be very careful about how you spend during retirement. Remember you are on a fixed income. It is not a good time to buy that expensive car you’ve been eyeing or decide to renovate your entire home on a whim. Unless you’ve been saving all along, your days of purchasing extravagant items are over.
6. Disregarding your Health
Health care can be quite expensive, especially as you get older. Despite the high costs, you should still make an effort to take care of your health. Getting sick will make your medical expenses even higher, so at the very least schedule an annual physical exam with your primary care physician.
There are no guarantees in life, but the best way to give yourself a better chance at retirement is by saving and investing wisely and working with a financial planner. This way, once you do retire, you’ll have enough money for your needs and some of your wants, as well.