Retirement Planning: Prepare Financially, Physically, Emotionally

This article will help people prepare themselves financially, physically and emotionally for the next phase of life:

Being Prepared Financially

– Start Saving – Saving, whether for retirement or any other goal, is a rewarding habit. If you are already doing it, great; if not, you should get started. Start saving from a small amount, and gradually develop a habit of keeping aside a specific amount of money every month.  Retirement savings programs like the Thrifts Savings Plan can help you plan for the future.

o   Federal Employees receive a match to every dollar they invest into their TSP Account – up to the first 5% of their income.  It’s like giving yourself a raise by simply putting the money in the account.

– Know Your Retirement Needs – if you wish to maintain the same standard of living after retirement that you currently have you should absolutely perform a Retirement Cost Analysis and a Retirement Benefit Analysis.  There are rules of thumb when it comes to retirement planning but as a federal employee your benefits can be very complex.  It is always best to operate with as much knowledge as possible.  PSRetirement.com offers readers a free retirement Benefit Analysis.

–  Know What You Are Eligible For Through Your Employer’s Pension Plan – Through your High-3 calculations and depending on whether you are covered by FERS or CSRS your Federal Annuity can be significantly different than your friends or colleagues.  Don’t rely upon their figures to determine what you think you might be eligible for.  Work with your HR Department and you may even want to talk with a knowledgeable financial planner who can help you determine how your Annuity should impact what other investments you may need to make before retirement to give you the income you need.

–  Know Where Your Money Is Invested – The type of investments you make play a significant role in how much you will have saved at retirement. Keep a track of where your savings and TSP money is being invested. Diversifying investments can minimize risk and depending on your age certain investments may be more appropriate than others.

–  Learn About Social Security Benefits – If you are a CSRS employee you may not be eligible to receive Social Security.  For FERS employees there are also impacts to your Social Security payments depending on when you claim it and how much you earn in the way of your Federal Annuity.  Because of the complexity of the different systems and how they impact one another – it is incredibly important to talk with an expert about what your benefits will be.

 Being Prepared Physically

–  Stop Smoking – Smoking causes life-degrading and life-shortening diseases.

–  Control Blood Pressure – after quitting smoking, the next most important thing that Americans should do is to control their blood pressure by eating healthy and having an active lifestyle.

–  Eat Healthy – The expression ‘you are what you eat’ proves to be right when people start having health problems after retirement because of their preceding unhealthy lifestyle. They should eat healthy both before and after retirement to avoid common health issues like blood pressure, hypertension, ulcers and others.

–  Stay Active – Many people have an active workout regime while they are employed, but once they retire, they give it up. Having an active lifestyle after retirement is equally important to stay fit.

–  Control Blood Pressure – High cholesterol means blocked blood vessels. The best way to lower cholesterol is to keep a check on your weight and exercise regularly.

–  Get a Regular Checkup – Even if you feel fit, getting an annual medical checkup is important as some health problems like diabetes, cholesterol and others might not have any obvious symptoms until   they get worse.

Being Prepared Emotionally

–  Set Lifestyle Goals – Make a list of things that you would like to do or places you would want to visit after retirement, for which you were too busy while employed. You can also plan your financial savings accordingly. Occupying yourself with interesting activities will offset feelings of uselessness after retirement.

–  Build a Network – It is important to have a good support system and social circle after retirement to mingle with people who are going through the same transition as you are.

–  Consider Your Spouse’s Feelings – Retirement is as much of a life-changing event for you as it is for your spouse, especially if they are still employed. Discuss their expectations, your feelings and sharing of responsibilities to make the transition easy for both of you.

Whether you are nearing the end of your service or are thinking to plan ahead, PSRetirement is your complete source of for all retirement-related solutions!