Before you choose to retire, take some time to think about whether you're really ready to embrace this particular milestone. Are you financially ready? Though you may be itching to leave your job and enjoy a more relaxed lifestyle, your plan could backfire if you're not financially prepared for what lies ahead. But the average American retiree cannot survive on Social Security alone. Contrary to what you may have been led to believe, Social Security is only designed to replace about 40% of the typical worker's pre-retirement income. If you're counting on Social Security in the absence of additional savings or income, that leaves you with a mere $6,320 per year, or $527 a month, to cover your remaining bills once medical care is accounted for. Many seniors, for example, work part-time to supplement their Social Security benefits, while others use retirement as an opportunity to start a business. Are you emotionally ready? One top financial planner - working alongside the experts at Motley Fool Wealth Management - has prepared a report, " The 7 Deadly Retirement "Sins" (And How to FIX Them)." Inside this free, no-nonsense guide, you'll discover how much you should be saving, plus tips and tricks to wring the most out of your Social Security and 401(k).
Can a workaholic ever retire?
Many workaholics genuinely enjoy the rush of starting and completing projects and continuing the nonstop cycle. So it may also be difficult for them to contemplate what life may be like in retirement once they are officially out of the workforce.
If you’re a workaholic, smoothing your transition to retirement means uncovering the answer to the question: What part of the end of your job will you miss the most? It might be the people. Or the challenges. Or having purpose. Once you know which it is, you can focus on how to reap the same benefits — and feelings — while not holding down full-time employment.
5 retirement tips for workaholics
Here are 5 tips to help workaholics ease into retirement:
1. Start slowly. If you jump into retirement all at once, the shock to your routine might be too much to handle. Instead, look for opportunities where you can work part-time, even with your current employer.
Cut back on your work hours gradually and your nonworking life could just slip into place. Look for a weekend job, or an after-hours job, to start while you’re employed full time. This could turn into part-time employment that you may want to pursue during retirement.
You might want to find out if your current employer would consider keeping you on as a consultant in retirement. This may help your employer retain your institutional knowledge while you enjoy a more flexible schedule.
If you plan to take Social Security retirement benefits before Full Retirement Age (between 66…