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Common challenges of retirement include: Struggling to switch off from work mode and relax, especially in the early weeks or months of retirement. Feeling anxious at having more time on your hands, but less money to spend. Finding it difficult to fill the extra hours you now have with meaningful activity.
Seven steps to retire early Determine how much income youll need in retirement. Figure out how much will come from Social Security and other fixed sources. Calculate your number. Take stock of where you stand. Make a savings and investment plan. Account for healthcare and other concerns. Stick to the plan.
The 3% rule in retirement says you can withdraw 3% of your retirement savings a year and avoid running out of money. Historically, retirement planners recommended withdrawing 4% per year (the 4% rule). However, 3% is now considered a better target due to inflation, lower portfolio yields, and longer lifespans.
If youve got five years to go until retirement, thats a good time to start thinking about what kind of lifestyle you want vs. what youll be able to afford based on what youve saved. Typical retirement expenses include housing, utilities, food and health care.
The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.

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6 Things to Do If Youre Nearing Retirement #1: Find out where you stand. #2: Boost your savings, if you need to. #3: Plan ahead for Social Security. #4: Consider tax-smart strategies now. #5: Get a head start on future health care costs. #6: Start thinking about retirement income.
If you retire with no money, youll have to consider ways to create income to pay your living expenses. That might include applying for Social Security retirement benefits, getting a reverse mortgage if you own a home, or starting a side hustle or part-time job to generate a steady paycheck.
Crises during retirement can come in many forms: divorce, catastrophic medical expenses, natural disaster, disability, care for an elderly family member, or loss of an income source. Experiencing these financial setbacks in retirement can be especially overwhelming.

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