Make The Most of Your Retirement

Simple steps can help ensure that your life as a retiree is fulfilling and fun

Retirement is one of life’s greatest adventures. You’ve spent a lifetime thinking about what you want to do once your working days are over, and now is the time to do it. But entering retirement is also a big change. Your lifelong routine is suddenly shaken up. Now you have to figure out how to spend your days. There are also a ton of things to plan for, including what medical coverage you’ll have. Just in the past two years, the ranks of retirees 55 and older in the U.S. have grown by 3.5 million. About 50% of U.S. adults age 55 and older say they’re out of the labor force and retired, as of the third quarter of 2021. 

If you intend to stop working soon, protecting your health is key to making the most of your retirement. And there are a few other must-dos that will make your retirement as fulfilling as possible. Here’s what to keep in mind as you plan. 

1. Create a new routine

Just because your 9-to-5 days are over doesn’t mean you shouldn’t have a schedule. You don’t have to keep waking up to a 6 a.m. alarm, but it’s good to follow a routine. In an American Journal of Lifestyle Medicine study, researchers found that practicing daily routines showed significant improvement in overall health and reduced chronic stress. 

Maybe you commit to going for a walk before breakfast. Or you could plan to go to the grocery store on the same day every week. Consistency is key. But don’t beat yourself up if you struggle to maintain your routine right away. The same study found that it takes an average of 66 days for a new habit to stick. 

2. Sign Up for Medicare On Time

There are two time periods when you can enroll in Medicare without paying a penalty. The first enrollment period spans three months before your 65th birthday, the month of your 65th birthday, and the three months after your 65th birthday. The other enrollment period is when you retire after age 65 and have health insurance through your employer. You can then sign up when you stop working.

But if you miss these periods, there is a penalty added to your bill, explains Sarah Murdoch, director of client services for the Medicare Rights Center in New York City. And it never goes away. “People can feel overwhelmed by the process of getting Medicare and are much happier when they’re informed,” Murdoch says.

The first step is to learn all you can about your choices. There are two primary options:

• Original Medicare (Medicare Parts A and B) covers basic medical needs, such as hospital and doctor’s visits. You can usually see any doctor who accepts Medicare, but it doesn’t typically cover prescriptions, vision, dental, or hearing services.
• Medicare Advantage (Medicare Part C) plans cover the same standard medical services that Original Medicare covers and often more, including medication, vision, dental, and hearing. Medicare Advantage plans can be less expensive than Original Medicare, but they tend to have more restrictions. You might need to see doctors from the plan network or get a referral to see a specialist.

3. Know the limitations of Medicare

Because Original Medicare doesn’t cover certain services such as vision and dental, you must pay out of pocket or purchase a vision or dental plan from a private Medicare-approved insurance company for these benefits.

Also important to know: Original Medicare does not cover people when they travel abroad, Murdoch explains, so consider getting travel insurance if you take a trip out of the country. “Medigap plans may cover emergency care abroad, but if you’re on a long trip, you may want to back it up with travel insurance,” Murdoch says.

Here’s another limitation: Medicare Part B (which covers medical visits) pays for only 80% of your health care costs. That means you’re responsible for the remaining 20% — and there’s no cap on out-of-pocket costs. A Medigap plan or a Medicare Advantage plan can help you cover the difference, Murdoch explains.

Original Medicare doesn’t typically include a prescription drug plan either. You’d have to pay an additional monthly premium to enroll in a prescription drug plan. And you may pay a Late Enrollment penalty if you delay your prescription drug coverage. “Look at your prescriptions with the names and doses of each medicine you take and the pharmacy that you prefer to use,” Murdoch says. “Then choose the plan that best fits your needs. Even if you don’t take prescription drugs, you still need drug coverage.”

4. Set goals for yourself

There are no more work deadlines in retirement, so you’ll need to come up with other ways to feel accomplished and motivated. Just as you did when you were working, have goals and keep them in your line of vision, Carosa says. Your goals could include home repairs, fitness aspirations or improving your golf game. 

At the same time, realize that these goals are not set in stone. Trust yourself to find your groove as you go. “You don’t have to have the perfect answer and your goals can change,” Carosa says. “Or maybe you achieve one goal, so then you move on to the next one.”