3 biggest lifestyle changes you'll experience in retirement

Retirement can be full of surprises, both good and bad. Discover what to expect in your first year of retirement and how to manage the changes.

Retirement is an exciting time, but it can also leave a lot of people feeling unsure of what to do with themselves. Before you retire, you'll probably wonder what to expect when you have so much more free time on your hands since there will be drastic transitions in your life. First of all, you're not going to have a daily schedule anymore that structures your routine. You'll have plenty of freedom, but without finding ways to fill your free time, you may feel a little isolated and bored.

It's important to come up with a plan beforehand. Joining clubs, volunteering, spending more time with your family or other activities will be crucial to making the most of your retirement. You've spent decades figuring out what you most enjoy about life and work. Now is the time to put that information to use.

Retirement can sometimes affect your self-image. Being employed can give you a sense of status and an important role in the world. Once you retire, you might find that the changes can be confusing and frustrating, and you may struggle with your new lack of responsibility. You might decide to seek support from your friends and family, or seek out help from a retirement organization to make sure your retirement is fulfilling.

Budgeting before retirement is crucial in order to adapt to the changes that this new life can bring. Without a steady income, you may need to make different choices about your lifestyle and finances. You might have new hobbies that you want to take up that could be costly, or you might want to travel more to see relatives. Whatever your plans are, it's important to have a good idea of what you can afford with your newly adjusted income.

Healthcare is an important consideration to keep in mind when you embark on retirement. Some people will have continued medical care from their employer, but others will have to find other ways to cover non-basic expenses. Accounting for out-of-pocket expenses related to health care will ensure that you don't end up going into debt later in life.