Many of us dream of the day we can finally stop working. But have you really thought about what your day-to-day retirement life is going to look like?
Before you hand in your resignation letter, know the 10 biggest retirement surprises that tend to catch people off-guard.
Understanding these realities might help you avoid wasting money or ending up bored during your golden years.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
You might have more downtime than planned
Endless days to do whatever you want sounds idyllic. You can go golfing, catch up on books, or have lunch with friends or family.
But then what? You may get bored with golfing every day or reading books all the time. It’s important to plan your retirement well and add a little variety to your day so you don’t get bored doing the same old thing for days and weeks on end.
Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.
You might miss work
Whether your job was rewarding, stressful, or both, chances are good that you looked forward to retiring and not having to deal with the day-to-day grind of the office.
But work also provides daily structure and allows you to interact with other people. When you retire, you might miss those things more than you expect.
Think about the aspects of work that you enjoy. To avoid boredom in retirement, you can search for activities that offer those things (without the constant grind that working brings).
Household chores can be overwhelming
Retirement might be a great time to catch up on household chores. But even with all your extra time, completing all those tasks can feel overwhelming.
So, tackle projects one at a time and take them slowly. In most cases, there is no need to rush — you now have the time to work at your own pace.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.49%, 24.49%, or 29.49% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Health care costs might exceed your budget
Health care costs can be expensive in retirement. Remember that you can’t enroll in Medicare until you’re 65 years old, so you’ll have to carry private insurance if you retire before that age.
And once you enroll in Medicare, you will still have many out-of-pocket costs to pay. For example, Original Medicare typically does not cover vision or dental services.
So, before you retire, make sure you have a plan to cover these costs as they arise.
Divorce is a possibility
Life doesn’t always take the route you expect, and sometimes, that includes how your marriage unfolds.
Divorce is a possibility during retirement. Perhaps your relationship has been in trouble for a while. Or you might just naturally drift apart during retirement.
In fact, divorce rates have been increasing for decades among those 50 and older.
A divorce after you retire can dramatically impact your retirement, from your finances to your emotional life. Splitting your assets means you might have only half the retirement assets you planned on. Meanwhile, you will be responsible for paying all costs yourself.
Hopefully, you will stay married. But be prepared for the possibility that life can take unexpected turns during your golden years.
Trending Stories
You might underestimate the importance of Social Security
Are you factoring Social Security into your retirement plan?
The size of your Social Security payment can vary depending on how much money you earned, how long you worked and other factors. The age you enroll in the program also plays a huge role in the size of your Social Security check.
Supplementing your Social Security income with savings and investments helps. But for many people, Social Security will have a major impact on the quality of their retirement.
You might spend a lot of time alone
Retirement is likely to be an exciting new chapter in your life. But remember that not everyone is retiring at the same time you are.
If retirement plans include seeing more of your friends or family, remember that they might be busy with their jobs, taking care of their families, or other things.
And spending more time with your spouse is difficult if your partner doesn’t retire at the same time you do.
Relocation might not be in the cards
Many of us dream of retiring and moving somewhere warmer, or closer to family or friends. You also might plan to downsize or to try a different neighborhood.
But moving might not be as easy as you expect. Relocating to another place can be costly. Maybe the place you want to move to is more expensive than your current home, for example.
TV might become your best friend
Seniors and retirees tend to spend a lot of time watching television. The notion of catching up on your favorite shows probably sounds exciting.
But turning a TV into your best friend during retirement might not be the best idea. Retirees can benefit from getting out of the house and interacting with others.
So, remember to make time to step away from the television from time to time.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Investments might fluctuate in value
If you invested during your working years, you probably got used to seeing the value of your 401(k) or an individual retirement account (IRA) fluctuate over the years. But unless you sell those investments, that volatility will likely continue during retirement.
Watching your investment portfolio decline during your working years is bad enough. But seeing the value of your investments shrink in retirement — when you no longer receive a steady paycheck — can be a lot scarier.
So, it might be time to consider dialing back on the risks you take in your portfolio during retirement. Or, maybe you can stay fully invested but find a legitimate way to make extra money so you will have a buffer should the stock market tank.
Bottom line
Many of us cannot wait for post-work life. Some workers are so anxious to get started that they plan to retire early.
But before you call it quits, make sure you know what to expect from retirement. Create a list of activities you want to try and consider ways to stay active in your local community.
If you prepare for retirement in advance, you will be able to better enjoy all that post-work life has to offer.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.
Author Details