Are you retiring in the next two years? Consider these tips for a successful transition

The approaching summer makes me dream. You too?

If your dreams are to take the plunge into retirement as soon as possible, here are three tips to consider as you prepare for the next act of your life.

No. 1: Numbers matter, but so does how you plan to live your life.

It may seem strange that the first tip isn’t about making sure you have enough money saved. Numbers matter, but what you plan to retire from is just as important.

If retirement means moving away from work and the routine of a working life, then it is essential to identify the fulfillment you have gained from work and how this will continue to be important in retirement.

For many people, this means finding a new or updated identity as we shed the job titles and accolades of a career. Imagine you’re at a party and someone asks you, “What are you doing?” » Now think about how you would answer this question as a retiree.

Updating your identity can be liberating and overwhelming. Give yourself time to think about what the next business card will look like before abandoning the current one.

If work largely meets your social needs, thinking about how you will meet those needs in retirement is the key to success. Loneliness is found to shorten our lives when left unchecked, so even if you’re not very social, it’s important to have a plan for social connection.

This might look like reconnecting with old friends, finding new friends, or building a deeper community with your current friends.

One of the most disorienting experiences for a newly retired person can be the upheaval in their daily routine. It feels liberating to be able to linger over coffee and the morning paper, or enjoy a long lunch with friends while you’re crammed into a schedule of meetings and emails.

While it can be rewarding, most people need to bring an element of structure to the days and weeks of retreat to feel balanced and fulfilled. Take out a piece of paper and draw a picture of what a week of retreat might look like. Focus on activities that are enjoyable, engaging, or meaningful.

No. 2: Save money outside of 401(k)s and IRAs.

One of the biggest shocks in retirement can be taxes. You may think you’re almost done with it when you stop earning a salary.

If you’re considering using your retirement savings accounts to create your own paycheck, it’s likely that most of that money hasn’t been taxed. Before you know it, you could be paying tax rates similar to what you were paying when you were working.

It’s not too late to focus your savings on money that has been taxed to balance pre-tax money. This may look like a high-interest savings account, money market, CDs, or an account where you purchase investments with after-tax money, often called a brokerage account.

No. 3. Track your spending today to test your retirement plan.

It’s important to monitor your spending early in retirement to ensure your spending will be sustainable throughout your life. Keep track of all your expenses before you retire. You can use this information to understand what your expenses will look like in retirement.

Tracking your spending before retirement serves two purposes. First, you can identify areas where you want to cut back now so you can put that money toward savings. Second, you’ll have your eyes open to your spending when planning for retirement.

You can then see how long your money would last with this level of spending. If you’re overspending and need to make adjustments, it’s best to do it sooner rather than later in retirement.

Retirement should be the golden years of your life and it can happen with the right planning. Engage with a certified financial planner to see if you’re on track to retire well.

Jessi Chadd is a CERTIFIED FINANCIAL PLANNER professional and member of the Financial Planning Association of Greater Kansas City. She is a shareholder and director of wealth management at Aspyre Wealth Partners in Overland Park.