How to Enjoy Retirement

You did it. You worked hard for decades, you saved consistently for retirement, and now you’re ready to cross the finish line into the wonderful world of retirement. But be warned. You might roll out of bed on that first Monday morning and find yourself wondering, Well. . . now what?

While most retirees are more relaxed, less stressed and happier after calling it quits, that isn’t the case for everyone. A recent study found that 1 out of 3 retirees (33%) haven’t seen their happiness improve after retiring, and an unfortunate 8% are actually less happy.¹

It might sound strange, but there are folks who just don't know how to enjoy retirement. Some get bored of golfing after a while. Others feel aimless, without purpose. And some are worried about running out of money during retirement.

If you’re struggling to enjoy retirement, don't worry—there are some things you can do right now to get the most out of your golden years.

Stay Out of Debt

Those who are happiest in retirement are usually the ones who have all their debt paid off—and they worked their tails off to get to that point. According to a recent study, 61% of the retirees who said they’re much happier in retirement paid off their debt at least five years before retirement.²

Carrying debt into retirement is like having a storm cloud constantly hanging over your head—you’re always going to be thinking about it. That’s a huge reason why you should be completely debt-free (that includes a paid-for house with no mortgage) before you decide to call it quits.

If you’re still a few years away from retirement, use the debt snowball to pay off all your debt and knock out that mortgage while you still have time to get your financial house in order. Don’t want to do it alone? Sign up for Financial Peace University, which will show you how to beat debt and take control of your money!

Stick to a Budget

With fears swirling around about inflation, Social Security and taxes, lots of folks are worried about how far their nest egg will be able to take them in retirement. In fact, nearly 2 out of 3 (63%) of Americans are more afraid of running out of money during their golden years than death itself.³ (It’s time to step up your game, Grim Reaper.)

That’s why budgeting is so important, especially in retirement. Having a monthly zero-based budget that accounts for all your income sources in retirement—from your 401(k) and IRA to Social Security retirement checks—will protect you from overspending in retirement.

And make sure you are setting a responsible withdrawal rate from your retirement accounts that will allow you to enjoy your retirement without worrying about bleeding your nest egg dry within a few years. It’s a good idea to meet regularly with a financial advisor you trust to talk you through all your options.

If you need help getting started, you can set up your budget for free with the EveryDollar budgeting app.

Ramsey Solutions is a paid, non-client promoter of participating pros.

Spend Time With Your Family

“To be well and have a full life, you must choose connection, relationships, and love,” Dr. John Delony says in his bestselling book Building a Non-Anxious Life. “Science proves that loneliness is killing us. Choosing to do life alone is choosing to die early.”

Market chaos, inflation, your future—work with a pro to navigate this stuff.

In other words, spending time with your family and loved ones is one of the best things you can do in retirement and it’s one of the activities retirees say they enjoy the most.⁴  With more free time comes more time to spend time with kids and grandkids, and that’s a blessing that you shouldn’t take for granted.

The key word here is time. Whether it’s joining your family for their annual summer vacation or getting ice cream with your grandkids after picking them up from school, what matters is making yourself available for those precious moments.    

If you need a starting point to help you bridge the generational gap between you and your grandkids, Questions for Humans: Grandparents and Grandkids can help you get the conversation started!

Keep in Touch With Friends

Here’s a sad and alarming trend: We spend more and more time alone as we get older, starting around the time we turn 40 years old. In fact, by the time someone reaches age 60, they’re spending an average of 6 1/2 hours alone per day.⁵

As we mentioned before, loneliness is a huge health problem. Researchers discovered that loneliness has a more powerful negative effect on our health than smoking 15 cigarettes a day.⁶

“We need other people surrounding us and supporting us to live healthy, whole, and fulfilling lives,” Dr. Delony says. “Friendships and deep relationships make life worth living.”

That’s why you need to stay connected with your friends, especially in retirement. Don’t wait around for someone else to make the first move. Reach out to old friends you may not have talked to for a while or old coworkers you used to see every day. Invite them to grab a cup of coffee or go to the ballgame this weekend.

Maintaining strong friendships in retirement takes some work, but it’s worth the effort. 

Pursue Hobbies

Whether you’re already retired or thinking about retirement, you need to have a good answer to the following question: What are you going to do with the rest of your life? If your answer is nothing, you’re going to get bored and tired of retirement really fast!

The truth is, we all need something to keep us busy, happy and healthy . . . and that’s where hobbies come in. Retirees engaged with a hobby report having better health, more happiness, fewer signs of depression, and higher life satisfaction than those who don’t.⁷ 

So, if your spouse has gotten really into collecting rocks (What’s that? Oh, sorry . . . they’re minerals), more power to ‘em. Maybe rocks and minerals aren’t your thing, but what activities do you enjoy? What are some things you’ve always wanted to try?

Here are some hobbies that could help spark some ideas:

• Gardening
• Cooking
• Photography
• Birdwatching
• Writing
• Volunteering
• Golf
• Fishing

We’re just scratching the surface here—the possibilities are endless! What’s important is making time to do the things you love to do.   

Travel More

Traveling is usually the most common activity that folks want to pursue in retirement. And why not? There’s a great big world to see, and now you have all the time you need to visit all the places you’ve always dreamed about.  

On an episode of The Ramsey Show, Caroline and her husband, who are 60-something retirees from Washington, D.C., wanted to pay for her entire family of 20 people to take a trip to Disney. They estimated that the trip would cost around $50,000. Dave Ramsey and co-host Ken Coleman encouraged the couple, who had built wealth and retired as millionaires, to go ahead and make the trip.     

“This is what you’ve worked for,” Dave said. “Go do it, enjoy it, and don’t [worry] about spending too much money—because it’s not too much. If you do this once and it’s a big one-time celebration, you’re going to be in great shape.”

Now you don’t have to do something that big—but you can go ahead and start planning trips. It’s never too soon to start thinking about where you want to go and who you want to go with. Book that flight to Paris or Tokyo. Go on that cruise to Alaska or the Bahamas. Take that cross-country road trip.

When you’re debt-free and you’ve done the hard work of building wealth for retirement, you can go just about anywhere you want to go! (But don’t forget—you still need to budget for any travel you do. Even Dave himself still goes on vacation on a budget.)

Take Care of Your Health     

It’s no secret that more health problems start popping up as you get older—and left unchecked, those problems could cause your nest egg to crack.

Couples retiring at age 65 today might need hundreds of thousands of dollars in savings to cover their health care costs during their retirement.⁸ Maybe that's why one of the most common regrets retirees have is not taking care of their health in the years leading up to retirement.⁹  

Staying healthy in retirement gives you a better chance of keeping your medical expenses lower and having a higher quality of life in retirement. Here are some ways you can take care of your health:

• Exercise regularly
• Eat a balanced diet
• Prioritize preventive medical care
• Take care of your mental health
• Maintain social connections

Too many folks wait for a medical emergency to do something about their health, but it might be too late by then. Don’t let that be you.

Be a Lifelong Learner

It’s not enough to simply take care of your physical body—you need to keep your mind sharp too.

Activities like reading, working puzzles, watching documentaries, learning new skills, and even card games can help reduce the risk of dementia, lower stress level and increase happiness. They can also keep brain cells working at optimum levels, which may slow cognitive and memory decline as you get older.¹⁰

Not only that, but lifelong learning can also create opportunities to connect with others in classroom or meetup environments. Many universities offer free or discounted classes for seniors (don’t worry, you won’t need to declare a major!), and there are more opportunities than ever for older adults to explore a range of subjects and interests.

Practice Generosity

In his book The Legacy Journey, Dave says that you’ll never reach your potential level of creativity, talent, passion, success or excellence until you learn to give. At the end of the day, the most fulfilled people are the most generous. 

Not only that, but giving is the most fun you can have with money. In fact, studies have shown that generous behavior is linked to increases in happiness.¹¹ That’s why Dave always says, “If you live like no one else, later you can live—and give—like no one else.”

That’s why it’s so important to prioritize giving in your financial retirement plan and find ways to give to your local church, donate to causes and organizations you’re passionate about, and help those around you in need.

And generosity doesn’t have to just stop with your financial gifts! You can also lend your time and your talents by volunteering in your community or taking mission trips overseas.

“Giving is the antidote for selfishness,” Dave says. “It’s the hallmark character quality of those who win with money.”

This article provides general guidelines about investing topics. Your situation may be unique. To discuss a plan for your situation, connect with a SmartVestor Pro. Ramsey Solutions is a paid, non-client promoter of participating Pros.