Table of Contents Introduction Creating the Plan Social Support Network Meaningful Activities Health Care Coverage Financial Well–Being Professional Help Resources

Creating the Plan

How do you want to spend your retirement years? Will you stay in the same house, move to a smaller place or retirement community, buy an RV and travel? Do you want to move to the mountains, the beach, or just closer to the grandchildren? Will you continue to work or will you volunteer 100% of your time to causes near and dear to your heart? Will you have the money to do any of the things you want to do? These are just a few of the questions you need to ask when you start to plan for your retirement.

Planning for retirement isn’t just about financial concerns. You’ll want a comprehensive plan that addresses all of these areas:

Go to TopSocial Support Network

In this area, self-employed consultants may have the advantage over employees who are accustomed to interaction with co-workers every day. Consultants may work from home offices and have little contact with others on a daily basis. To combat loneliness and isolation, consultants often establish a support network that can carry over into the post-work years. Maintaining memberships in professional organizations, keeping in touch with friends and social groups, family, and volunteering are just a few avenues that offer access to social support that can ward off feelings of separation and lonesomeness.

Go to TopMeaningful Activities

Perceived loss of productivity is another concern for retirees. Although we may fantasize that we’d enjoy doing nothing all day, boredom will probably set in before long, and that can lead to depression. We need a reason to get out of bed each morning and we need to feel as if we’ve accomplished something at the day’s end. Planning for activities that are meaningful to you is key to having an active, fulfilling retirement. A smorgasbord of opportunities exists; we can choose the activities that are most important to us. There are countless opportunities to contribute your time and expertise to your church, local schools, political party, and community. Check with your local Council on Aging or senior citizen volunteer agency to find local, regional, national, and even international opportunities. Loss of friends and spouses is a major issue for retirees; active, involved people can better handle these losses because they feel useful and productive. Current research shows that staying physically and mentally active, especially if we’re learning new things, keeps us healthy and fit in mind and body for better quality of life in our later years.

Go to TopHealth Care Coverage

People now worry more about health care costs than paying the mortgage in the retirement years. Fewer employers are offering retiree health insurance, and those who do are sometimes reducing coverage in an effort to limit rising expenses. Self-employed consultants don’t even have that option. Be sure to include disability, health, and long-term care insurance in your retirement plan. Don’t rely on Medicare alone—according to the Employee Benefit Research Institute, with health-care costs rising three times faster than inflation, a 65 year-old without employer coverage would need at least $116,000 for Medicare supplement and drug coverage through age 80. When you arrange for health care coverage as a self-employed consultant, inquire about insurance for your retirement years, too. If you have a spouse who works for a company that offers benefits, joining that plan may be your best option. If not, check whether any professional or alumni association you belong to (or could join) offers group coverage. With a part- or full-time business—even a one–person consultancy—your local chamber of commerce may offer some help. In some states, firms can apply for "group of one" insurance that allows companies with one employee (yourself) to obtain group rates. Make sure you know how this will carry over into the retirement years.

Go to TopFinancial Well-Being

Ah, the major concern on everyone’s mind. Financial planning for your retirement years can be overwhelming, with all the elements to be considered. It can become a full-time job in itself because you must spend time doing your own planning, research, and implementation of savings and investment strategies. Furthermore, once you figure out how you want to invest, you have to constantly monitor your investments, projecting future performance. All in all, it’s easier to do nothing; however, the payoff for doing nothing is rather meager.

Avoid these common mistakes in retirement planning:

There are several factors that will influence your retirement savings:

If you are lucky enough to have a 401(k) from a previous employer, you can roll that into an IRA and use it as “starter” for your retirement investing. If not, it’s never too late to start saving for retirement—you’ll just need a different strategy than if you’d been saving since early in your career.

Go to TopThe best way to devise a successful strategy is to consult a professional, a task that can be daunting in itself. All those financial titles—what do they mean and which is the best choice for your needs?