Americans are living longer, and financial planning is critical to a comfortable retirement. Many planners suggest a “three-legged stool” approach with retirement income from Social Security, pensions (if applicable), and personal savings or a "four-legged chair" approach with the addition of post-retirement earnings.
But finances are not the only facet of retirement planning. Three other issues to consider are:
• Housing: Where will you live? Do you want to stay in the same house, the same neighborhood, the same climate? Talk this over with your family. One couple moved to another state to be closer to their daughter without discussing it with her. Their daughter moved to get away from them!
• Use of Time: Do you want to continue working for pay? Is it a financial necessity? When not working for pay, consider using your time to volunteer in neighborhood, religious, or professional organizations. Research indicates that if you want to stay mentally alert in your later years, you have to exercise your brain through activities such as volunteering and participation in the labor force. Thinking beyond financial issues will increase the likelihood of an enjoyable retirement.
• Physical well-being: You need to consider your health including your eating habits and exercise to prevent the onset of poor health.
For more information, see the eXtension retirement planning resources at: "Financial Security: Retirement Planning.
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