How to get out of a workaday schedule

When I was a young man, I envisioned retirement as an endless holiday, with lots of time for golf, travel and family, writes Stan Hinden of The Washington Post. ``How naive I was! When I finally was ready to leave the workaday world, I discovered that there's nothing restful or relaxing about the process of retiring,'' he writes.Hinden had to take several decisions when he retired from The Washington Post's business section in 1996. ``I hope that what I've learned since then will help people preparing to retire in the next several years,'' he writes. ``Based on my experience, I believe that most retirees will be faced with 10 key decisions,'' he adds. They are:

Am I Ready to Retire? Your answer will depend on your age, your job, your financial situation, your health and your outlook on life. Ask yourself whether you are ready to give up working and everything that goes with it, including the challenges, frustrations and the familiar routines of your job.

Can I Afford to Retire? Get out yourcalculator. Financial planners say you will need about 70 per cent of your wages to maintain your lifestyle in retirement. Unfortunately, many retirees do not have pensions. Some firms have replaced their pensions with employee savings plans. Although companies may contribute to those plans, employees bear most of the cost of funding their retirements.

When Should I Apply for Social Security? Three months before you retire (as in the US). The traditional retirement age is 65. You can retire at 62 and get a social security payment that's been reduced by 20 per cent. At the same time you can work past 65 and increase your benefits. Many retirees work to earn extra money. However, in the US if retirees earn more than a specific amount, they have to give back some of their social security benefits.

How should I take my pension payments? By whatever method gives you the best deal. Pension plans vary widely, but most plans will give you several options: If you're married, you can accept a reducedmonthly payment so that your spouse can receive part of your pension after you die. Or if your spouse agrees, you can take the entire amount of your monthly pension for as long as you live. But when you die, the payments cease. Some companies also may allow retirees to take their pensions in a lump sum or choose other payment options. p What should I do with the money in my company savings plan? Make it work for you. In the US, if you put your money into your company savings, you could retire with a nest egg of several hundred thousand dollars. Before you start thinking new cars and cruises, remember that you may have to depend on those savings to generate income for the rest of your life.

How do I take money out of my IRAs? Very carefully. There are several complicated methods for making withdrawals, and you will have to decide which one is right for you. Mutual funds and brokerage firms will help you figure it out.

How should I invest during retirement? Once you have taken a lump sum orrolled over your savings into an IRA account, you must decide how to keep that money growing so you don't outlive your nest egg.

What should I do about health insurance? When you get into your retirement years, and the threat of illness rises, medical insurance is vital to your peace of mind and financial stability.

Where do I want to live in retirement? Florida. Arizona. North Carolina. California. Or any other place that guarantees a good lifestyle.

What kind of lifestyle is right for you? Whatever makes you happy.

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