If you plan to retire within the next few years, it is time to complete your retirement plan. Most retirement planning experts suggest that you plan a set of new activities when you retire from your current job. You can use the years immediately before retirement to develop skills you can use after retirement. Experts also advise forming friendships with people other than your fellow workers. New friendships may keep you from feeling lost and lonely after your retirement. The primary goal of this publication is to help you plan your retirement income. However, without a plan for retirement activities, you may feel that your life is dull and dreary even though you have enough income.

After planning retirement activities, determine your goal and assess the finances you will need to reach these goals. Reaching your goals requires a financial plan. To complete a financial plan for your retirement years, you first must choose your retirement date. Next, figure out the number of years you will require retirement income (your life expectancy). Then, develop a spending plan. Finally, figure out the amount of retirement income you will receive.

When Should I Retire?

Base your decision to retire the following factors: (1) your health and potential health insurance benefits, (2) your life expectancy, (3) your eligibility for full Social Security and pension benefits, (4) the size of your savings, and (5) the way you and your family feel about retirement. When you rate these items, be aware that many of them relate to one another. For example, perhaps your savings and company pension are low, and you expect to live beyond the normal life expectancy. Then, the traditional retirement age of 65 may not be right. On the other hand, suppose your parents' and grandparents' lives were relatively short and your health is questionable. In this case an early retirement may be a right choice. By planning now, you will be able to predict more accurately whether your expected income benefits will match your expenses. This knowledge will help you decide your retirement date.

Decisions About Retirement Living

There really is no place like home. When asked about their preference for housing, most seniors answer, "What l would really like to do is to stay right here." The person's own home represents security and independence to most Americans.

Most housing, however, is designed for young. active and mobile people. To live at home, a person must, at the very least, be able to drive, go shopping, cook. and do household chores. Many of us will lose one or more of these abilities as we grow older.

One option is to purchase inhome services, to cope with declining abilities. For a fee, an army of workers will appear to cut your grass, wash your windows, cook your meals, do the shopping, and even provide personal care and/or skilled nursing care. This may be the option for you, depending on the amount of help you need. However, this can be expensive and will require a lot of management and coordination.

For people willing to relocate, there are plenty of options, although there may be some confusion about what all the terms mean. You may hear about "board and care homes," "personal care homes," "life care" and "continuing care retirement facilities." All refer 'to some type of "assisted living" or serviceoriented housing.