Once your adult children have moved out of the home to begin building their own lives, you find yourself in the “empty nest” stage of life. For some parents this time can feel lonely, but it’s also a time for new opportunities. Now you can finally focus on your own future!
Now that your household is much smaller, you may find yourself enjoying more disposable income than ever before. It’s tempting to take vacations, eat out, and purchase some luxury items that you previously denied yourself while focusing on the children. This is a normal reaction to sudden freedom and extra money in the budget, and there is no need to completely deprive yourself. However, indulging in too many whims could mean you begin living a lifestyle you won’t be able to continue in retirement. After you quit working, you could be left with a feeling of disappointment in your sudden (perceived) austerity.
A wise strategy would be to treat yourself occasionally, but use this time to manage your retirement savings wisely. Aside from having fewer household members to feed and clothe, you may also see significant savings when you remove children from car and health insurance policies. You may also see this as a good time to downsize to a smaller home, and a smaller mortgage payment along with it.
At this point, you have several options for your extra monthly income. Paying down student loans and credit card debt before entering retirement will help to ensure more financial freedom during retirement. Investing the extra money to boost future retirement income may be an even better idea for many soon-to-be retirees. The bottom line is that once the empty nest years begin, your finances can be rearranged in ways that are very beneficial to your future. Consult with your financial advisor or insurance professional to make the right adjustments to your retirement plans.
This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.