The First 7 Things You Should Do When You Retire

Most retirees, upon the start of their retirement, may be more than ready to start fulfilling some of their big plans. Before you get carried away with booking flights or cruise tickets, consider what it really means to enter this next chapter and how to set yourself up for success. Within the first 30 days of retirement, retirees should prioritize the following aspects of their lives.

Establish a Budget

Retirees who do not already have a budget should establish one prior to the first 30 days of their retirement. Once you have created a budget, carefully follow it. It’s important to make your funds last through your retirement years, said Kimberly Foss, CFP and founder of Empyrion Wealth Management. Having a budget will ensure you’re able to keep saving and helps stop you from underestimating any monthly expenses.

Check Your Retirement and Investment Accounts

“Make sure you receive any lump sums owed on retirement and carefully consider your best options with those funds,” Foss said. “You don’t want to miss out on any income so it’s important to keep on top of all the details.” As you check in with your retirement accounts, retirees are also recommended to review their investments. Throughout the duration of your retirement, you should continue to review your portfolio with your financial advisor to make sure your investments are rebalanced and maximize the best return.

Apply For Social Security Benefits

Foss recommends applying for Social Security benefits at least three months before your retirement. Find out what kind of documentation you may need to submit through the Social Security Administration. Retirees may complete their application and submit it online or by calling the SSA at 800-772-1213. Remember to check in on the progress of your application. Retirees who plan on working during retirement, even in a part-time capacity, will also need to consider how this may impact their benefits.

Pay Attention to Taxes

“Depending on what month you retire, don’t forget to file your taxes, as your retirement income will still be taxed,” Foss said.

Update Your Estate Plan

The first 30 days of your retirement is a good time to review your estate plan. Foss recommends having an updated will in place. This includes a living will and power of attorney. “Make sure all your named beneficiaries are in place and create a document which provides the location and source of important financial, healthcare and other information,” Foss said. “Planning ahead will help to protect you, your family and your assets in future.”

Talk It Over With Your Partner

If you are retiring and have a partner, chances are they probably know about your retirement plans. What may be less clear is how your routines will change moving forward. You should discuss retirement together, said Andrew Rosen, CFP and president at Diversified LLC. Partners who are both working, or if one is working and the other is at home, may find their daily routines are going through a revamp. It’s a good idea to discuss how your newfound freedom may impact your schedules and each other. “We like to say you should be retiring TO something and not FROM something,” Rosen said. “Find what you enjoy in life in those first 30 days, so you can spend more time in your retirement doing what brings you happiness and joy.”

Celebrate!

You’ve taken care of all your retirement housekeeping and now it’s time to celebrate this amazing accomplishment. Go out for a nice dinner, enjoy a glass of bubbly and toast to this achievement. You’ve earned it! “It’s wonderful to retire and it’s important to take time to acknowledge the hard work you’ve put in to get to this point in your life,” Rosen said.