When it comes to achieving a successful retirement, financial concerns are near the top of the list. Many Americans fear running out of money during retirement, and a sizable number rely on Social Security payments for the vast majority of their retirement income.
Build A Nest Egg
Most people will find that it’s necessary to have a nest egg to enjoy a successful retirement. Few people can have the retirement of their dreams with Social Security alone. Building a nest egg will likely take time, perhaps decades. It requires a financial margin monthly over the long run. By carefully budgeting spending, it’s possible to put some money aside each month. Investing this money is a better idea than simply saving it. Investing in the stock market tends to provide a relatively high growth level, and small regular contributions can grow to a sizable sum over decades. This nest egg can provide income through dividends or capital gains through stock appreciation. Harvesting the dividends and capital gains can go a long way toward supplementing any Social Security income and providing a more comfortable retirement.
Spend Time Effectively
Many people focus only on the financial side of retirement. However, it’s also essential to look into the quality of life issues. Many older Americans fail to account for where they will spend their golden years and what they will do. The recent pandemic caused many retirees to sequester themselves behind closed doors for weeks or months on end. However, many retirees spent little time engaging in activities that they find meaningful even before the pandemic. A successful retirement requires maintaining a sense of meaning, and this involves engaging in activities that provide joy and significance. Golfing with friends can provide some enjoyment, but there is more to life. Stepping out and volunteering for organizations that coincide with their values can help retirees feel helpful. It can also provide for stronger social bonds.
When looking at retirement success, it’s easy to focus only on the dollars and cents. However, maintaining a social life that provides meaning is also an important indicator of retirement success. Those who balance the two are more likely to enjoy a happy retirement in the long run.