Retirement is unquestionably a time of change. And there are a lot of reasons for that.
For one thing, you're going from holding down a job to having your days free. You're also going from collecting a steady paycheck to having to rely on what's hopefully a combination of savings and Social Security.
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Because retirement represents such a huge shift, a lot of people use it as an opportunity to make other changes in their lives. But here are a few retirement decisions that could end up backfiring on you.
1. Relocating
A good number of people tend to relocate in retirement to enjoy better weather or cheaper living costs. And both of these things are good reasons to consider a move. But before you relocate in retirement, think about what it might mean for your lifestyle.
If you're someone with roots in your community, relocating could mean having to start over. And while there are different ways to get out and meet people at an older age, there's also something comforting about having your decades-long friend circle and support system on hand.
Also, relocating in retirement could mean moving farther away from family. That could make your life more difficult should you wind up needing help because of health or mobility issues down the line.
2. Downsizing
Downsizing is a decision a lot of retirees make, and for good reason. If you don't have children living at home and have excess living space you don't really need, why continue to pay for it in the form of higher property taxes, utility bills, and upkeep?
That said, downsizing has its drawbacks. For one thing, it could mean having to move out of your direct community and not having quite the same easy access to your friends and favorite places as you once did.
Also, you may not have grown children living at home. But if yours live far away and you end up with a much smaller place in retirement, it could leave your grown kids -- and their kids -- with no room to stay when they visit. That could result in fewer visits because of cost constraints.
3. Not working
Many people retire and pledge to never work again. And if you don't particularly need money, you may not be in a rush to go back to work in retirement. But refusing to work is a decision that might hurt you.
Finances aside, work can serve as a great way to stay busy in retirement. That's important at a time when so many people risk depression and isolation.
Working can also be a great way to keep your mind sharp. And if you're someone who tends to maintain a more sedentary lifestyle when left to your own devices, working could be your ticket to moving around more and staying in better shape. That could translate to better health on a whole and fewer costly medical expenses to deal with.
Think things through carefully
It's not uncommon to relocate, downsize, or write off work in retirement. And depending on your financial situation, some of those choices could make sense. For example, if money is very tight, it could be wise to move to an area with cheaper living costs or dump some square footage.
But before you commit to any of these decision, think them through and make a pros and cons list. You may find that you have a change of heart once you consider the big picture.
