How to Plan for a Happy Retirement

A happy retirement must be planned

When we look forward to retirement, we always think how happy we will be not to have to punch a clock, to be able to be our own person, to do whatever we feel like doing.

But retirement is not always so ideal. If you retire without careful planning, you may find yourself depressed, stressed or just plain bored. Here are some tips to help you plan for a happy retirement.

Things You'll Need

• Make a budget
• Maximize savings
• Reduce what you owe
• Study your options
• Find meaningful ways to be occupied and healthy

Instructions

1. 

   Create a budget you can live with.

   The very best thing you can do to help plan a happy retirement is to live within your means. Create a budget using store-bought software, which will help you track your spending and your progress toward your saving goals.

2. 

   Maximize your savings.

   Contribute regularly to a 401(k), 403(b), IRA, or other investment plan. At 50 and older, you can put as much as $22,000 into a tax-deferred, traditional 401(k)plan or 403(b).

3. 

   Reduce what you owe.

   Pay off your debts before retiring. Even a low-rate mortgage can be a burden if other expenses go up and your income falters.

4. 

   Study your options.

   When you are planning your retirement, also devise a Plan B in case you're forced to retire early or can't sell your home. Your alternative plan might include a tighter budget or a different retirement location. To determine your social security benefits at different ages, go to www.ssa.gov. Another major issue is health care coverage. You can move to your spouse's insurance plan, find a new job with health care benefits, extend your own employee coverage under COBRA, or look for private health insurance.

5. 

   Find meaningful ways to be occupied and healthy.

   Stress can affect your satisfaction in retirement even more than shortage of money. Poor family relations, poor health, loss of identity, boredom, etc., are factors that are stress-related. Before retiring, develop hobbies, line up volunteer work, plan trips or work part-time. Strengthen your personal connections outside the workplace, and do everything you can to maintain good health.