By Maury Bachman of Kiplinger’s Personal Finance
Resignation is a major change in your life. Many people celebrate this transition, but once your career is over, you will face some challenges. Like other major life events, retirement includes adjustment periods where a little preparation is often aided.
Those who are satisfied when they retire tend to be more proactive. A recent survey by the National Association of Planning Advisors (NAPA) shows that the happiest retirees usually prepare beyond their financial security before resigning.
Still, like major changes in life, there are losses and regrets. Below are some things you might lose if you retire and what you should do about them.
1. Financial Security
It’s not surprising that you’re financially struggling after resigning. A 2024 Gallup poll found that around 75% of retired Americans say they have enough money to live comfortably.
Still, losing your steady salary can be a blow to your financial trust. And you may feel uneasy about spending money when you rely on your savings and social security.
Thankfully, there are steps you can take to achieve more financial security when you retire. First, avoid the blow to Social Security benefits if possible. A 62-year-old is when you are eligible to sign up for benefits first, but you can avoid cuts by waiting until the full retirement age to submit.
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You also need to know that delaying your Social Security claims beyond your past retirement age will improve your benefits forever. This incentive is gone at age 70, but you will receive an 8% increase with every modestness.
Secondly, come up with the help of yourself or a financial advisor to come up with a safe withdrawal rate for your savings. The 4% rule, which proposes withdrawing 4% of savings, has adjusted the balance of the first year of retirement and future withdrawals of inflation, which has long been popular, but has some flaws. Also, depending on the mix of investments and average life expectancy, it may not be suitable for you.
It also helps you load up your income-generating investments during your retirement. This protects savings from stock market crashes (i.e. by preventing those assets from being touched in the event of a recession). It enables portfolio growth.
Bonds are a popular option for retirees as they pay interest as expected. Within that asset class, you might want to focus on municipal bonds that pay interest that is exempt from federal tax.
Dividend Stocks and Real Estate Investment Trusts (REITs) are other options to consider. REITs typically provide above-average dividends due to the requirement to distribute at least 90% of their taxable income to shareholders.
2. Employee benefits
Ending your career doesn’t just mean giving up on your salary. It also means losing the benefits package offered by your employer. This could include subsidized health insurance.
Medicare kicks at age 65 for eligible enrollees, but it doesn’t cover everything. Original Medicare does not pay for dental treatments, eye examinations or hearing aids. Also, supplementary insurance does not provide coverage for these services.
Most Medicare Advantage plans pay for dental treatment, eye examinations and hearing aids, among other supplemental benefits. However, Medicare Advantage Plans are well known for their bottleneck care with strict pre-certification requirements. And they often limit subscribers to narrow the provider’s network.
Therefore, it is essential to read Medicare aloud before resignation and carefully select compensation each year during open enrollment. Meanwhile, as needs evolve, changes can be made to Medicare advantages or part D drug plans.
It can also help to gain funds for healthcare before you retire. If your employer-sponsored insurance plans are compatible with your Health Savings Account (HSA), you will pay to donate those funds and reserve them for the year after work.
3. Your Social Network
Unless you’re a person working from home, your work will act as a social outlet and will allow you to access the company almost every day. And it’s not uncommon for people to fight loneliness when they retire.
A 2024 Transamerica survey found that only 53% of retirees lived an active social life. And 17% of retirees feel isolated and lonely. The loneliness of retirement comes at a real cost for both individuals and society.
So set yourself up with social activities after retirement so that you don’t end up missing a company. If your peers are not retired, check if your local community centre or place of worship has activities for people of your age. If you have a social media page in your town, you can also reach out to see if there are people in a similar situation to those interested in meeting coffee, walking clubs, or other activities you find interesting.
You might also consider moving into a vibrant retirement community where many older Americans are surprised to find a lively social life.
4. Your sense of purpose
The aforementioned Transamerica report found that 24% of retirees often feel anxious and depressed. And a mass-measure study in 2024 found that 8% of retirees were less happy than before their careers ended.
Many retirees lose their sense of purpose when they quit their job. However, this could lead to an overall unfortunate presence without economic concerns.
To avoid this, come up with a plan to fill your days before you retire. And the plan could include starting a part-time job or your own business without needing any money.
Volunteering is another great way to do things that make sense and give back to the community. It could also lead to more social connections and overall more fulfilling experiences.
Another option? I’m going back to school. In all 50 states, there is a good chance that retirees will take university classes for free (or close to free).
Whatever it is for you, retirement is the time to follow your bliss.
©2025 The Kiplinger Washington Editors, Inc. was distributed by the Tribune Content Agency, LLC.
The views and opinions expressed are those of the author. They are for general informational purposes only and should not be interpreted or interpreted as recommendations or solicitations. Epoch Times does not provide investments, taxes, legal, financial planning, real estate planning, or other personal financial advice. Epoch Times is not responsible for the accuracy or timeliness of the information provided.
