I’d like to continue the series on strategies for folks who get laid off before they are ready to retire.
Accelerate your retirement plans: If downsizing or relocating were on your list of things to do in retirement, accelerating those plans may provide the cost savings you need in order to comfortably retire today. Those two items alone offer many potential savings, including reduced expenses associated with upkeep of a larger home, taxes, commuting to work, insurance, and social pressures that may not be present in retirement. It’s advisable to meet with your financial advisor and accountant to help run the numbers and have a conversation about the impact of such a decision. You may even leave the meeting feeling pleasantly surprised.
To conclude this series, While losing your job later in life is difficult, it can also serve as a wakeup call to get your finances in order before entering your official retirement. Getting a handle on your budget, organizing your finances, and evaluating your insurance coverages are all excellent ways to prepare for life after work. Furthermore, adjustments to your lifestyle by working as a consultant or in a different career can be great for mental health as you enter retirement. Although many people look forward to leaving the workforce, choosing to continue working, gradually transitioning out of corporate America to a less stressful job, helps retirees keep active, have daily structure and stay mentally sharp, while also providing some additional income in order to delay living strictly off their savings.
As people continue to live longer, there is no doubt that the trend of leaving the workforce prematurely will continue. Having a strategy in place for that possibility is the best way to preserve your finances as well as the retirement you envisioned.