Most people have a plan for when they would like to retire. But life doesn’t always go according to your plans, and sometimes you are thrown a curve ball. Your employer may be restructuring, you may have health problems, or maybe you have to care for an elderly parent. Either way, you now find yourself retired and are wondering what to do next. Here are three initial steps for effectively dealing with this scenario.
The first step is to take a deep breath. When major life events occur, it is possible to react emotionally and make big, ill-informed decisions. Try to avoid making choices that are irreversible or could have a large impact on you financially. Do not take money out of your retirement accounts without first talking with your financial planner. Ask your planner to update your retirement projection and check out the results. You may be in better shape than you originally thought. Once you have determined the status of your retirement projection, you will have a better road map of what to do next.
If you are not able to reach your retirement goals without making lifestyle adjustments, step two would be to consider getting a part-time job. If you are not able to get hired in your desired field again because of your age or extraordinary circumstances, consider working part-time. Getting a part-time job for a couple of years may mean the difference between your financial plan working out or not. The income received from a part-time job will also help ease the burden on your savings and investment accounts.
The last initial step to dealing with a forced retirement is to reevaluate when you should claim Social Security benefits. You may have planned on working until age sixty-seven and delaying Social Security benefits until that time as well. Now that things have changed, you must reexamine this decision. Ask your financial planner for their advice. Claiming Social Security benefits at the correct time can have a huge impact on your retirement projection.
Your financial plan is not a fixed instrument. It should move and change with you. A financial planner can help you change your strategy as life events occur. This will allow you to have the best shot at retirement success, no matter what life throws your way. If you find yourself in a situation like the one above, don’t hesitate to reach out to us. We are here to help.