Retirement Archives — Beating Broke

Ready to Retire? Make Sure You’ve Hit These 9 Financial Milestones

July 24, 2025 By Catherine Reed Leave a Comment

Retirement is a significant life event that many look forward to, but it comes with its own challenges, especially financially. Being ready to retire isn’t just about reaching a certain age; it involves meeting key financial milestones that ensure you can enjoy your golden years without financial worry. Here, we explore nine essential financial milestones to achieve before you decide you’re ready to retire. These goals will help you assess your readiness and ensure a solid financial foundation for the next phase of your life.

1. Debt-Free Living

One of the most crucial financial milestones before retirement is eliminating high-interest debt, particularly credit card debt and personal loans. Carrying debt into retirement can significantly strain your finances, as fixed retirement income might not cover debt repayment and living expenses. Ideally, your mortgage should also be paid off, allowing you to live more freely without the burden of monthly loan payments. This milestone ensures that your retirement savings and income are devoted to your living expenses and enjoyment rather than paying off debts.

2. Building Adequate Retirement Savings

Ensuring you have enough saved to cover your retirement years is critical. Financial experts often recommend having at least 10-12 times your final pre-retirement salary saved. This should ideally be a mix of retirement accounts like 401(k)s, IRAs, and other savings or investment accounts. If you haven’t already figured out how much money you need in retirement, assume at a minimum that you’ll need 75% of your current salary. Next assume you can withdraw 4% from your nest egg per year. Then compare the two figures. This should tell you if you’ve got enough saved.

3. Healthcare Planning

Healthcare costs in retirement can be significant. Having a comprehensive healthcare plan, including Medicare and supplemental insurance, is crucial. Consider the costs of long-term care insurance, which can cover expenses not included in regular health insurance. Being prepared for unforeseen health issues by having this coverage in place can prevent significant financial strain later.

4. A Tested Retirement Budget

Before you retire, test out a retirement budget. Try living on your expected retirement income for several months while still working. This will help you adjust your spending habits and ensure your budget is realistic based on your retirement income. This trial period can reveal unexpected costs and help you refine your budget before you fully commit to retiring. Remember, nothing says you have to stop working in retirement – you can always work on smaller projects to bring in money or take a part time job.

5. Diverse Income Streams

Relying solely on savings or Social Security can be risky. Having multiple income streams can provide extra security. Consider rental properties, bond payments, dividends from investments, or a part-time job if you want to keep working. This diversification helps buffer against poor market performance that could affect your primary retirement funds. A good place to start is by finding dividend stocks with an AI generated list. Or, if you want an old fashioned human curated list, a good place to start would be the dividend aristocrats – or companies that have consistently raised their dividends for decades (here).

6. Updated Estate Plan

An updated estate plan is vital as you approach retirement. This includes having a will (or revising your current one), designating powers of attorney, and potentially creating trusts. These documents should be reviewed and updated to reflect your current wishes and ensure your assets are distributed according to your plans without legal complications.

7. Long-Term Investment Strategy

Having a long-term investment strategy that shifts from accumulation to income generation is crucial. This strategy should be less about aggressive growth and more about preserving capital and generating a steady income. A financial advisor can help, but there are plenty of DIY tools available as well. Most of the major brokerages like Schwab or Fidelity offer these kinds of tools – check your portfolio check up section.

8. Social Security Strategy

Deciding when to start taking Social Security benefits is a significant decision. Although you can begin collecting benefits at age 62, delaying benefits until your full retirement age or even age 70 can significantly increase your monthly payments. Evaluate your health, financial needs, marital status and life expectancy to make an informed decision that maximizes your benefits. Schwab has a good basic overview of factors pertinent in deciding when to take Social Security, here.

9. A Plan for Leisure and Lifestyle Goals

A major factor many retirees face when they first begin retirement is cognitive decline and associated mental health issues such as depression and anxiety. However, research shows that an active lifestyle including maintaining hobbies and building or maintaining strong interpersonal relationships can reverse this decline (per Forbes). Whether it’s traveling, hobbies, or spending time with family, make sure you plan how you want to spend your time. This includes budgeting for activities you enjoy and considering any potential costs associated with these pursuits.

These Financial Milestones Could Mean You’re Ready to Retire

Achieving these financial milestones can make the difference between a stressful retirement and a fulfilling and secure one. Being ready to retire means more than just stopping work; it involves meticulous planning and preparation to ensure your retirement years are as enjoyable as possible. Each milestone is a step toward creating a stable and rewarding retirement experience, giving you the peace of mind to fully enjoy this new chapter of your life.

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Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Retirement Boredom Busters: 9 Ways to Spice Up Your Golden Years

June 12, 2024 By Catherine Reed Leave a Comment

Retirement marks a new chapter in life, offering the freedom to explore new interests and hobbies. However, the lack of a daily routine can sometimes lead to feelings of boredom. Finding engaging activities can transform your golden years into a period of excitement and fulfillment. Here are nine ways to bust retirement boredom and maximize your newfound free time.

1. Travel the World

Traveling during retirement allows you to explore new cultures and create lasting memories. Whether it’s visiting countries you’ve always dreamed of or taking road trips across your own country, the opportunities are endless. Traveling can be both educational and exhilarating, providing a break from the usual routine. Planning trips and discovering new places can significantly reduce retirement boredom.

2. Learn a New Hobby

Retirement is the perfect time to pick up a new hobby you’ve always been interested in but never had time to pursue. Whether it’s painting, gardening, or playing a musical instrument, learning something new can be incredibly fulfilling. Hobbies provide a sense of accomplishment and keep your mind active. Engaging in a creative or physical activity can be a great way to beat retirement boredom.

3. Volunteer Your Time

Volunteering offers a chance to give back to the community and stay socially connected. Many organizations always need helping hands, and your skills and experience can make a significant impact. Volunteering not only helps others but also gives you a sense of purpose and belonging. It’s an excellent way to keep retirement boredom at bay while making a positive difference.

4. Try a New Fitness Routine

Staying physically active is crucial for maintaining health and well-being in retirement. Joining a gym, taking yoga classes, or simply going for daily walks can keep you fit and energized. Fitness activities also provide opportunities to meet new people and form social connections. Regular exercise can be a fun and effective way to combat retirement boredom.

5. Enroll in Classes

Many educational institutions offer courses specifically designed for retirees, covering a wide range of topics from history to technology. Lifelong learning keeps the mind sharp and can open up new areas of interest. Taking classes can also provide a structured routine and opportunities to socialize with peers. Expanding your knowledge can make your retirement years both exciting and intellectually stimulating.

6. Join Social Clubs

Social clubs and groups cater to a variety of interests, from book clubs to hiking groups. Joining these clubs can help you meet like-minded individuals and form lasting friendships. Regular meetings and events structure your weeks and are something to look forward to. Being part of a community can significantly reduce feelings of retirement boredom.

7. Start a Small Business

Starting a small business can be rewarding if you have a passion or hobby that you can monetize. Whether it’s crafting, consulting, or running an online store, entrepreneurship can keep you busy and engaged. Running a business provides a sense of purpose and the thrill of working on something you love. It’s an excellent way to stay active and beat retirement boredom while potentially earning some extra income.

8. Spend Time with Family

Retirement offers the perfect opportunity to spend more quality time with your family. Whether it’s babysitting grandchildren, planning family gatherings, or traveling with loved ones, these moments can be incredibly fulfilling. Building stronger relationships with family members can provide emotional satisfaction and joy. Sharing experiences and creating memories can significantly alleviate retirement boredom.

9. Explore Technology

Embracing technology can open up a world of possibilities for staying connected and entertained. Learning to use social media, video calling, and other online platforms can help you keep in touch with friends and family. There are also countless online courses, games, and streaming services to keep you engaged. Exploring technology can be a fun and effective way to combat retirement boredom and stay mentally active.

Take Advantage of These Retirement Boredom Busters and Spice Up Your Golden Years!

Retirement boredom can be easily overcome with a bit of creativity and willingness to explore new activities. There are countless ways to spice up your golden years, from traveling and learning new hobbies to volunteering and staying active. Embracing these opportunities can lead to a more fulfilling and enjoyable retirement. By staying engaged and pursuing your interests, you can transform your retirement into the best years of your life.

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Unretiring: 9 Reasons Baby Boomers Return to the Workforce

May 29, 2024 By Catherine Reed Leave a Comment

In recent years, the trend of unretiring has become increasingly common among Baby Boomers. Many retirees are choosing to re-enter the workforce for various reasons, reflecting changes in economic conditions, personal aspirations, and societal norms. Understanding the motivations behind this trend can provide valuable insights into the evolving nature of retirement. Here are nine reasons why Baby Boomers are unretiring and returning to work.

1. Financial Necessity

One of the primary reasons for unretiring is financial necessity. Many Baby Boomers find their retirement savings insufficient to cover their living expenses. Rising healthcare costs, unexpected financial emergencies, and longer lifespans can deplete savings faster than anticipated. Returning to work helps alleviate financial pressures and provides a steady income stream. For some, unretiring is a practical solution to maintaining their standard of living.

2. Rising Healthcare Costs

Healthcare costs continue to rise, placing a significant burden on retirees. Medicare and other insurance plans may not cover all medical expenses, leading to out-of-pocket costs that strain fixed incomes. Unretiring can provide access to employer-sponsored health insurance, reducing the financial impact of medical bills. Additionally, extra income from working can help cover the cost of long-term care and other health-related expenses. Many Baby Boomers return to the workforce to ensure they have adequate healthcare coverage.

3. Social Engagement

Retirement can lead to feelings of isolation and loneliness, as social interactions often decrease without the daily work routine. Unretiring offers an opportunity to stay socially active and connected with others. Returning to the workplace provides a sense of community and purpose, which can improve mental and emotional well-being. Many Baby Boomers seek the social benefits of working, finding fulfillment in their interactions with colleagues and customers. Staying engaged in the workforce helps combat the loneliness that can accompany retirement.

4. Intellectual Stimulation

The desire for intellectual stimulation drives many Baby Boomers to unretire. Retirement can sometimes lead to boredom and a lack of mental challenges. Returning to work provides opportunities to learn new skills, solve problems, and stay mentally sharp. Engaging in meaningful work can keep the mind active and delay cognitive decline. For those who value continuous learning and intellectual growth, unretiring offers a way to satisfy these needs.

5. Sense of Purpose

Many Baby Boomers find that retirement lacks the sense of purpose that a career provides. Work can offer a feeling of accomplishment and significance that is hard to replicate in retirement. Unretiring allows individuals to contribute to society, share their expertise, and achieve personal goals. The sense of purpose that comes from meaningful work can enhance overall life satisfaction. Baby Boomers often return to the workforce to reclaim a sense of purpose and direction.

6. Pursuing Passion Projects

For some Baby Boomers, unretiring is an opportunity to pursue passion projects or second careers. Retirement can provide the freedom to explore new interests and turn hobbies into paid work. Whether it’s starting a small business, engaging in creative endeavors, or entering an entirely new field, unretiring can be a gateway to fulfilling lifelong dreams. Many Baby Boomers return to the workforce to follow their passions and find joy in their work. This transition often brings a renewed sense of enthusiasm and fulfillment.

7. Supporting Family Members

Supporting family members financially motivates some Baby Boomers to unretire. With children facing student loans, housing costs, and other financial challenges, retirees may feel compelled to help. Additionally, caring for aging parents or spouses with medical needs can require additional income. Returning to work provides the financial resources needed to support loved ones effectively. Unretiring becomes a way to ensure the well-being of family members and meet their needs.

8. Longevity and Health

As life expectancy increases, many Baby Boomers remain healthy and active well into their later years. The desire to stay productive and engaged drives some to unretire and continue working. Longer, healthier lives mean many retirees still have the energy and capability to contribute to the workforce. Working can provide structure and routine, positively impacting physical and mental health.

9. Economic Conditions

Economic conditions like inflation and market volatility can impact retirement plans. Fluctuating investment returns and changes in the cost of living can make fixed incomes less reliable. Unretiring provides a way to mitigate economic uncertainties and ensure financial stability. By re-entering the workforce, retirees can adjust to changing economic realities and protect their financial future. Essentially, the decision to unretire is influenced by the need to adapt to evolving financial landscapes.

Unretiring Is a Baby Boomer Trend for Many Reasons

The trend of unretiring among Baby Boomers reflects a combination of financial, social, and personal factors. Returning to the workforce solves financial challenges, healthcare costs, and the desire for social engagement and intellectual stimulation. Additionally, opportunities to pursue passions, support family members, and adapt to economic conditions motivate many to re-enter the job market. As life expectancy continues to rise and economic conditions evolve, the trend of unretiring is likely to remain significant for Baby Boomers seeking a fulfilling and secure retirement.

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