How to Stop Being Afraid of Retirement

If you’ve ever dreamed of quitting your job right on your 67th birthday and living a quiet life in retirement, well, the pandemic has probably shattered that vision. These days, the combination of high inflation in our country and people’s low savings means that many have lost confidence in their ability to retire.

If you’re rapidly approaching retirement age or it still seems like a pipe dream, it’s natural to worry about the possibility that retirement just isn’t financially possible for you. Here are a few steps to take and plans to take now so you can feel more confident about your retirement options in the future.

Decide where (and how) to retire

When it comes to where you age, it’s not necessarily about shrinking – it’s about “the right size.” For example, you may find that you can afford nicer housing if you move to a cheaper area .

For those who are worried about the financial possibility of moving, you may want to consider subsidized senior housing . Availability of these units varies greatly by region, and there is often a long wait after applying. Do your research now and get your application as soon as possible.

There is no one-size-fits-all answer, but it’s never too early to consider all options until you feel more confident about where you’ll age. If you are planning to move, you can do so well in advance of any health issues.

Get the Most Out of Social Benefits

You can get bigger Social Security checks by deferring payments . Although you have the option to start receiving payments as early as age 62, your Social Security benefits increase for every month you wait until you reach age 70.

If you were born in 1960 or later, your full retirement age for Social Security benefits is 67. If you start paying at that age, you’ll get 100% of what you’re entitled to… According to CNBC , by age 70 it will increase to 124% of that payout at age 67. Of course, waiting a few more years for a bigger check means you’ll get fewer checks overall. You can learn more about the basics of Social Security benefits, including what factors can affect your payments, here . You can also visit the main Social Security website or call the department toll-free at (800) 772-1213.

Boost your savings now

If you have a retirement account, try to maximize your contributions as much as possible. The 2023 IRA contribution limits are $6,500 for those under 50 and $7,500 for those aged 50 and over. While there is no age limit for IRA contributions, you do need earned income, so you might want to consider phasing your retirement to keep your cash flowing.

If you don’t have a retirement account, now is the time to create one . Just a few years of savings in a retirement account will bring surprisingly significant results . Even if you’re starting from scratch, any amount of deferred taxes is better than none.

Here are a few more ways to retire if you have next to nothing to retire .