Consider downsizing

Why continue living in a big house that eats up a lot of your money for maintenance?

When you leave the workforce, you should consider downsizing to a smaller home or renting a condo that suits your new lifestyle better. Renting allows you to avoid maintenance and related costs. It also gives you the opportunity to get closer to services and live in a home with age-friendly features, like no stairs.

Don’t retire in the middle of the year

Retirees should have access to financial backup for three to five years of retirement expenses, according to Silverberg. This will prevent them from using their money from investments such as stocks during a downturn. Another option would be finding a part-time job that they can do from home.

People with no access to cash reserves might plan to take out money from their retirement accounts soon after retiring, however. In this situation, the best time to retire might be at the very beginning or very end of the year, Silverberg adds.