There are a few things in life you can do that you can’t undo. You can’t turn back the clock. Once you jump out of a plane at 15,000 feet, you’re committed to your parachute. Retirement is another one of those things that is almost impossible to undo. It’s literally a life-changing event. So why do so many retire without a plan?
People retiring in their mid-60s will likely spend 20, 30, or more years as a retiree. Before they make the plunge – “jump out of the plane” – they had better know that they have a parachute that works.
The Baby Boom generation is retiring at the rate of thousands a day and most haven’t planned adequately. Over the coming decades there will be a lot of changes in their lives. They will have to spend their time differently. The cost of living will go up and they may face medical expenses as they grow older. Their income may not match their expenses and they will need to figure out how to bridge the gap or where to cut back.
A good plan, prepared before you hand in your retirement notice, can take most of these issues into consideration. If you don’t plan, you could be making the biggest mistake of your life.