What You Need to Know About Pre-Retirement Planning

When you’re young, retirement is probably still far from your mind. But it’s never too early to plan for life in retirement, especially if you want to live comfortably. If you’re unsure where to start, we’ve made a simple guide to help you with your pre-retirement planning.

Have a Clear Vision of Your Early Retirement Life

When you begin planning for retirement, the beautiful thing is that you can dream and plan the way you want it to be. In fact, the earlier you start, the better.

Think about how you want to live in your retirement years and how much you can afford to spend. Do you want to travel the world? Do you want to spend more time with your family? Or do you just want to kick back and enjoy retirement in your own home?

As you plan for your early retirement life, you may want to consider some of the following:

  • Where do you see yourself living in retirement?
  • What activities will you engage in?
  • When do you want to retire?
  • How much do you need to live comfortably in retirement?

You can map out your vision of retirement in a financial plan. And with a financial plan, you’ll know how much you need to save at what age. You can even set yourself a fixed or flexible retirement date to help you stay on track toward retirement.

Plan to Continue Earning Income

In your retirement plan, you may want to consider continuing to earn an income in a different way, whether you choose to do this part-time or full-time.

For example, you may want to consider:

Working part-time: As you get older, you may want to cut down on the amount of time you spend working to have more time to enjoy the things you love. You may also want to work part-time so you can have extra income to supplement your retirement savings.

Starting a business: If you’re still in good health, you may want to consider starting your own business or partaking in a franchise opportunity.

Making an estate plan: If you’re still healthy and have time, you may want to consider making an estate plan to see how you can provide for your family.

Figure Out Your Retirement Housing Plans

Since the housing market, especially in urban areas, is very competitive, you may want to consider a retirement housing plan of your own. As an example, you may want to consider:

Buying a house that’s cheaper and in a location that’s more affordable: You can check out cities and towns in other areas that may be more affordable and that have a lower cost of living.

Buying a vacation home: You may want to consider buying a vacation home that you can use for part of the year.

Downsizing to a smaller home: If you live in a big home, you may want to downgrade to a smaller one. This will let you save money on taxes, utilities, and maintenance.

Looking for a retirement home near family or close to friends: When you’re nearing retirement, you might not want to be away from your family or friends. If this is the case, you may want to consider a retirement plan that will allow you to be close to your loved ones. 

Final Thoughts

While you may be a long way from retirement, now is the time to consider your early retirement plan. An early retirement plan is an excellent way to plan for the future. In fact, the sooner you get started, the better.

Plan for your future with the help of My State Pension. We specialize in providing retirement strategies for education, state, and municipal government employees. My State Pension is dedicated to helping you maximize benefits and retire with peace of mind. Schedule your free retirement planning session now!

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If you are a K-12 educator or staff, collegiate educator or staff, municipal or state employee we can connect you with a licensed financial professional with the experience needed to help you understand your pension benefits and overall retirement plan.