Most retirees will agree that not worrying about going broke or how you’ll pay for medical care during retirement is paramount. Many also agree that money alone doesn’t make for a truly gratifying retirement.

With these notions in mind, here are some tips—related to both financial matters and things money can’t buy—to make the most of your golden years.

Share a vision for retirement with your spouse

Thinking about where you want to live during retirement is a good start. U.S. News & World Report publishes an annual “Best Places to Retire” study based on various factors including taxes, affordable housing, happiness ratings, and desirability: a great place to begin if you’re unsure of where to settle during retirement.

Should you both envision brand-new environs, it’s perhaps more practical to consider renting before you buy. This is especially important if the location is far away from friends and family and/or you’re unfamiliar with the area. Costs are also often more predictable when renting given necessary repairs often associated with homeownership, especially if the home is not brand new. In the worst-case scenario as a renter, if you both find yourselves unhappy in your new place, you’re at least well-primed to pivot quickly and with less hassle if you don’t need to sell a home.

You should also talk through the potential scenario of retiring at different times, which can help sidestep any tension before it arises. Basic activities—such rising in the morning at the same time (versus one spouse always sleeping in), assigning household chores, and not feeling trapped at home while your spouse works—are significant factors in maintaining a healthy, happy marriage.

Establish a daily routine

The newfound freedom you’ll have, though positive, can trigger a few negative health consequences if you’re unprepared for related adjustments during retirement.

Staying up until the wee hours, waking up late, and keeping erratic eating schedules are just a few bad habits retirees can quickly slip into if they’re not careful. How you start your day, for example, can set you up for success. One Ohio State University study found that your morning mood has the power to determine your productivity for the day. By establishing good morning habits and sticking to a routine, you’ll give yourself the structure you became accustomed to during your working years while still leaving time for everything you want to accomplish.

Strengthen your relationships

Juggling a 9-to-5 job, family, and relationship can certainly take its toll. When you’re retired, however, you’ll enjoy the time to nurture relationships you may have put on the backburner for years—which is a great thing as many benefits are associated with strong personal relationships.

In fact, Harvard research found that those who are socially connected are happier, healthier, and live longer than their less-social peers. Isolation, on the other hand, can yield devastating effects such as a decline in brain function and shorter life span.

According to Dan Buettner, author of Blue Zones—a book dedicated to uncovering the secrets of longevity—loneliness can potentially shave eight years off your life. This is reason enough to seek out strong bonds and connections with those closest to you.

Live an active lifestyle

Various sources including WebMD state that about 30 minutes of daily activity that gets your heart going and blood pumping (e.g., a brisk walk) can provide several health benefits including lowering your blood pressure, keeping your bones, muscles, and joints healthy, easing symptoms of depression and anxiety, lowering the risk of heart disease, and making it easier to manage chronic conditions such as diabetes and arthritis. Ultimately, retirees who stay fit and active give themselves better odds to dodge unnecessary healthcare expenses: a win-win for your well-being and your wallet.

Plan for the unexpected

While it’s impossible to plan for every scenario out there, a few common ones often catch retirees by surprise. These include:

Housing expenses that don’t disappear in retirement

Even if you’ve paid off your mortgage, you’re still unlikely to avoid home repairs and/or renovations in the years to come. For example, remember that most houses aren’t designed with old age in mind. Therefore, if you require wheelchair accessibility or need to expand a bathroom or convert existing space so key areas are all on one level, expenses can quickly pile up. Even a brand-new home isn’t immune to accidents and weather damage that homeowners insurance may not cover.

Medicare, which is often more expensive than you think

To put it bluntly, Medicare isn’t cheap. While Part A (hospital insurance) premiums are generally free, you may still encounter deductibles if you’re hospitalized. Most people also pay a monthly premium for Part B (medical insurance), which starts at $174.70 per month and can rise as high as $594—depending on your income.

What’s more, as Original Medicare (Parts A and B) won’t cover everything, you’ll need to consider Medigap and Medicare Advantage plans for vision, dental, hearing, and prescription drug coverage.

Medicare also only covers long-term care in very limited circumstances. Consequently, you’ll need a policy that—according to the American Association of Long-Term Care Insurance—can range anywhere from $2,085 to $4,935 annually, depending on your age and coverage amount. Should you choose to forego a policy, you’ll need to take out an insurance rider (also pricey) or pay for expenses on an out-of-pocket basis.

Finally, keep in mind that IRMAA is an additional sum you may need to pay alongside Medicare premiums, as Medicare imposes surcharges on higher-income beneficiaries. To the surprise of many Medicare enrollees, IRMAA surcharges are based on your income from two years prior. If you become eligible for Medicare in 2025, therefore, your 2023 tax return will determine the amount you’ll pay in surcharges (currently triggered when your modified adjusted gross income exceeds $206,000 (for married taxpayers filing jointly) or $103,000 (for individual taxpayers)).

Family members who still need help

A recent Bankrate study reported that 50% of parents with adult children are sacrificing, or have sacrificed, their retirement savings to help their children financially. While putting your kids ahead of your retirement funds is noble, you’ll need to understand related financial impacts on your future and draw the line accordingly—though of course that’s perhaps more difficult than it sounds. Helping children establish and implement budgets and assume responsibility for specific expenses can help them gain financial independence so you can cross this concern off your list.

The need to identify potential income gaps

An unpleasant scenario that requires planning for nonetheless is if one spouse passes away before the other. As this relates to Social Security, the surviving spouse can take what’s called a “survivor benefit” and thus collect a check based on his/her own working record or that of the deceased—whichever is higher. Know that even with the survivor benefit, however, you may still need to fill an income gap.

Don’t stop learning

Trying new things to exercise your brain (e.g., learning to play an instrument, reading new types of books, listening to podcasts, or attending a class) can reap positive rewards for your health. In fact, several studies have shown that engaging in cognitive activity as you grow older can help maintain brain cells, improve memory, and even delay symptoms of dementia/Alzheimer’s disease.

Don’t know where to start? Check out if your state offers free (or inexpensive) college courses for seniors and retirees. For example, New Jersey gives residents aged 65 and older the opportunity to take courses at any of the state’s public or private universities, tuition-free. New York does the same for residents aged 60+. Inquire early, as open spots are often at a premium!

In sum: retire, happily!

While retirement is in many ways all it’s cracked up to be, that’s not to say it doesn’t come with its own fair share of unique challenges. Thankfully, a well-executed game plan—from both a mental and financial perspective—can help ensure this period of your life is a little (or a lot!) more gratifying.

Have questions about anything retirement-related? Schedule a FREE Discovery call with one of our CFP® professionals today!

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Vision Retirement is an independent registered advisor (RIA) firm headquartered in Ridgewood, New Jersey. Launched in 2006 to better help people prepare for retirement and feel more confident in their decision-making, our firm’s mission is to provide clients with clarity and guidance so they can enjoy a comfortable and stress-free retirement. To schedule a no-obligation consultation with one of our financial advisors, please click here.

Disclosures:
This document is a summary only and is not intended to provide specific advice or recommendations for any individual or business.