Las Vegas Review-Journal

Prepare for retirement both financiall­y and emotionall­y

- By Liz Weston

Many people don’t have much choice about when they retire. Illness, job loss or caretaking responsibi­lities push them out of the labor force.

But some people have the opposite problem:

They do have a choice, and yet they can’t quite bring themselves to quit working.

Some love what they do and never want to retire. Others are paralyzed by fear of the unknown, financial planners say.

“A lot of the people I see are financiall­y ready before they’re emotionall­y ready,” says Cathy Gearig, a certified financial planner in Rochester Hills, Michigan.

If you’re struggling, here are three signs you may be ready to retire.

You’ve faced your fears

Retirement is often depicted as an endless, stressfree vacation. In reality, retirement requires some potentiall­y stressful “paradigm shifts,” or fundamenta­l changes in people’s approach to life, says CFP Barbara O’neill, author of “Flipping a Switch: Your Guide To Happiness and Financial Security in Later Life.”

Instead of earning a paycheck, for example, retirees have to create one from their savings and other resources. If something goes wrong – the furnace dies, or their investment­s don’t do well – they can’t just earn more money to make up for any shortfall.

Those who have been diligent savers often struggle with the idea of spending their money in retirement.

“It’s really emotional for people,” says CFP Janice

Cackowski of Willoughby, Ohio. “They’re so used to seeing their account balances increase over the years and they find it really difficult to pull money out of their accounts.”

Other fears can cause people to postpone retirement, according to some financial planners. Gearig says some of her most successful clients, including business owners and top executives, have prioritize­d work to the point where they can’t imagine life without it.

“Honestly, the biggest fear I see is, ‘What am I going to do with myself if I don’t go to work all day?’” Gearig says.

Your financial plan has been stress tested

If your fears are financial, you can hire a fee-only financial planner to review your retirement plan. Choose a planner who is a fiduciary, which means they’re committed to putting your best interests first.

Getting an expert review is a good idea in any case. The planner can help you maximize Social Security benefits, navigate Medicare or other health insurance options, decide the best way to take a pension, plan for possible long-term care and figure out a sustainabl­e withdrawal rate from your savings.

“This will be your only retirement. It’s paramount that you get it right,” says Adam Wojtkowski, a CFP in Walpole, Massachuse­tts.

Using sophistica­ted planning software, the advisor also can stress test your plan to see how it works in the event of a major market downturn, a surge in inflation, higher tax rates or the premature death of you or your spouse, says CFP Shelly-ann Eweka , senior director of financial planning strategy for finance company TIAA.

You know what you’re retiring to (not just from)

Many retirees struggle, at least at first, to find a sense of purpose and a structure for their days. Having a plan for how you’ll spend your time can help, says CFP Ian Weinberg of Woodbury,

New York.

That plan might include a bucket list of travel and experience­s you can start checking off. Or, you could create a pie chart or schedule of how you want to divide your time among various pursuits.

You may need some time to prepare yourself mentally and emotionall­y for retirement. Just don’t let the preparatio­n continue indefinite­ly, since the future is never guaranteed, Gearig said.

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