Retirement is not what you retire from, but what you retire to.
When you plan for retirement, an exciting new phase of life, double-check your expectations. They may not match reality.
Baby boomers, currently in their 50s and 60s, view retirement differently than the previous generations. Many boomers consider retirement as an opportunity to begin a new career, hobby, or passion, which is a good thing. But the upcoming retirees may not take everything into account.
Five Misconceptions About Retirement
Here are five common misconceptions about retirement:
- Retirement is like a 30-year vacation. A life full of leisure must be great, right? Not really. Too much free time leaves many retirees feeling depressed and unimportant. Studies show that people who keep working after 65 tend to be happier, whether or not they do so by choice.
Among all, voluntary part-time workers are the happiest. While money is the main reason for continuing to work in retirement, stimulation and satisfaction are just as important.
- Money is most important to happiness in retirement. The biggest key to a happy retirement is good health. If you have financial security, you have enough. Money only correlates with happiness up to a certain point. You can still enjoy a happy and fulfilling retirement even if you are not a millionaire.
- Spending is consistent in retirement. People generally spend less in retirement, but that’s not always the case. Many spend the first few years traveling, and as years go by, the number of trips decreases while health care and family costs increase.
- Retirement is a “couples” thing. Couples face a new adjustment when entering retirement. One in three couples disagrees on the ideal lifestyle they want to have in retirement. You need to know that your partner has his/her own needs.
Also, women have a life expectancy six years longer than men. According to the Census Bureau, 60% of American women over 65 are single, widowed, or divorced.
- Financial planning stops at retirement. You still have many issues to deal with during retirement. It would be best to continue planning to ensure your funds can last as long as you do. You may have estate concerns and health issues that require long-term care.
Retirement is not what you retire from, but what you retire to. Just because you reach a certain age, it does not mean you have to stop working. And to stop working does not mean you stop planning for your life.
Plan and enjoy.
Make sure you plan your finances with a professional.
Talk to a financial professional to make sure your retirement planning is not left to chance.
At Popular, we are here to guide you in preparing for retirement. If you want to start or review your retirement strategy, contact Popular’s Retirement Center at firstname.lastname@example.org.
Source: Financial Media Exchange
The information and general descriptions found in this article are designed to help you understand some of the factors you should generally consider when evaluating the appropriateness of any strategy or investment within your retirement plan. Any description included is only for informational and educational purposes and for your independent consideration; it is not to be regarded or viewed as advice or as a recommendation to take (or refrain from taking) any particular action. By providing this information, we assume that you can evaluate this information and the general descriptions found here to exercise your independent judgment. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates are not engaged in rendering legal, accounting or tax advice services. If legal, accounting, or tax advice services are required, you should seek the services of a competent professional. Some Retirement Center services entail a cost which may vary according to the service.