Are You Retirement Ready?

I got quite a jolt when I opened my January Visa bill shortly after New Year's Day—the minimum required payment was double what it was in December. I couldn't figure out why it was so high. I hadn't used the card at all for any of my holiday shopping. Finally I decided that all the running around I did during the holidays had distracted me and I had probably mailed the check in late and the inflated figure reflected payment for two months. No such luck. A few days later I saw a news report on television about MBNA, Citibank, and Bank of America raising the minimum monthly payment due to pressure from federal regulators. Other credit card companies are expected to follow suit.

In the end this is going to be a good thing for me. Fortunately, I can handle the increase, and, just between you, me, and the lamppost, at two percent per month, I was never going to pay off that card by the time my retirement came around. Hiking my monthly payment by 100 percent is definitely going to help me get on the financial straight and narrow. Hopefully that will put me in a better position to enjoy my golden years, when the time comes for me to gracefully bow out of the daily workforce.

But there's more to retirement than just getting your credit card debt in order. There are a host of issues that go beyond financial planning, the most important of which is managing the transition from punching the clock to planning your day around getting to your favorite restaurant in time to order the early-bird dinner special. In our cover story, Senior Writer Kinley Levack explores exit strategies that can help planners get prepared to make the most of retirement. She talks to several planners who have successfully made the adjustment and also to career management experts; they all provide a variety of useful tips on how to manage this life-altering experience.

So whether your retirement is 30 years or 30 days away, you should read this article. It's never too early to start planning for the future. And here's one retirement tip from me: Cut up those credit cards.