10 Tips for a Financially Sound Retirement

You'll need to determine the amount of savings needed for your desired retiree lifestyle. Completing the calculation can boost one's confidence; over 25% of Americans who have completed a calculation say that they are very confident that they will save enough money for retirement, reports the EBRI.

A spending strategy is equally important. Rather than follow a budget, many people spend what comes in. Fricke encourages totaling the last 12 months' checks that you wrote to calculate a realistic withdrawal rate. Many professionals recommend a 4% spending rate of your savings, which should last for 25 years.

3. Think twice before leaving the workforce

"The mystique of retirement can look good from a distance, but later leads to regret something akin to 'buyers' remorse,'" says Dr. John Osborne, a professor emeritus at the University of Alberta.

So, try reducing work hours before quitting your job. It may enable you to return full-time, if needed.

Another consideration is retiree benefits. If you don't have them, many experts recommend delaying retirement until you qualify for Medicare. As you near 65 years of age, you should be able to negotiate a flexible work schedule.

"Fifteen years ago, if people retired without a retiree medical benefit, nobody gave it a second thought; they just went out and bought an individual health plan," says Fricke.

4. Be wary of cash buyouts

Know the implications of taking a buyout.

"Those who take buyouts can have later regrets about accepting money to retire, especially when they come to see themselves as a commodity," says Dr. Osborne, who authored "Retirement Psychology."

Osborne adds, "there can be feelings of being disposed of because one has reached a 'best before date,' or has been bought out."

Employers often hire specialists to persuade senior staff members to take a cash buyout, which enables them to replace high-salaried seniors with less-expensive junior employees.

If tempted with a buyout, first ask yourself: What you would do after accepting the buyout?

"Are there still opportunities for you to earn an income either through a part-time job, a shift in career, or turning a passion/hobby into a money making venture?" says AARP's Setzfand.