I’ve officially handed in notice to my boss that I’m retiring this year, which has made retirement feel a lot more real. How do I prepare for the rest of my life financially?

What to do before you retire

The final months before retirement are a crucial time to determine how much money you have and finalize a withdrawal strategy to ensure it lasts.

Budgeting for current and future expenses will help you come up with an effective withdrawal plan.

For many, the 4% rule is a decent guideline. This entails withdrawing 4% of your retirement savings in the first year, then adjusting the amount for inflation in subsequent years.

Depending on your portfolio, this strategy should ensure that your retirement savings last 30 years or so. The average American enjoys 20 years post-retirement.

If you’ve invested in a workplace pension plan, look at your individual benefit statement to find out how much you'll receive each month. Married couples may have different choices if an employer offers spousal benefits.

Depending on your age, you may also qualify for Social Security. The monthly benefit you’ll receive is based on how much you’ve paid in taxes and whether you choose to collect your benefits early or delay them until after your official retirement age.

The Social Security Administration website offers an online tool to calculate how much you could get in different scenarios.

When budgeting for retirement, keep in mind that you may not spend money the way you did while you were working. Maybe you’re close to paying off your mortgage, leaving you with extra funds. Perhaps you want to travel more, increasing your travel costs..

Don’t forget to budget for the long term as well, factoring in things like home renovations to help you age in place or the funds you might spend on health care down the road.

If you’re retiring before you’re 65, you’ll also need to budget for health-care premiums before you qualify for Medicare.

In the course of this budgeting process, you may discover that you don’t have enough money to sustain you in retirement. If that’s the case, consider boosting your income by continuing to work (e,g., part-time job), downsizing your home (to cash in on equity and save on housing costs) or selling a car you don’t need anymore.

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How to ensure a smooth transition

Finances are just one part of your retirement plan. Creating a sense of routine and purpose can help you ease into your new lifestyle, and prevent anxiety and stress.

For example, you can establish a morning routine that incorporates a daily walk and logging into an online writing class. Or volunteer at an animal shelter a few times a week, leaving other days free for relaxing activities like reading or sitting by the beach.

Staying socially engaged is crucial, as one in three retirees experience some form of isolation and loneliness.

With your budget set, and a daily routine filled with purpose and pleasure, any retirement jitters you have will be replaced with a sense of opportunity in this next stage of your life.