A record number of Americans hit retirement age this year — and are marking the occasion by handing in their retirement notices. But for many, their financial future is uncertain.

In fact an estimated 4.1 million Americans will be retiring every year from now through 2027. It’s a phenomenon Jason Fichtner, executive director of Alliance for Lifetime Income, has dubbed the “Peak 65 Zone” (1).

Fichtner notes that unlike older boomers, most of these younger retirees have no pension, “which used to help fill the gaps left by Social Security.”

If you’re among them, it’s understandable if you’re feeling both exhilarated at starting a new chapter and nervous about how you’re going to fund the rest of your life.

Retirement is a big life transition. It helps to have a solid financial plan and the resources to support it to feel comfortable as you wave goodbye to your working life.

Here are some ways to prepare for the transition.

Be sure to use the months leading up to retirement to run some numbers and determine your net worth.

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 should ensure your retirement savings last 30 years or so. The average American enjoys 20 years post-retirement.

Read more: Are you richer than you think? Here are 5 clear signs you’re punching way above the average American’s wealth

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

If you’re 65, you will qualify for Social Security. The 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.

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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.

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.

The University of Michigan reports that one in three retirees experience some form of isolation and loneliness, so staying socially active and engaged is essential.

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.

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Retirement Income Institute (1)

This article originally appeared on Moneywise.com under the title: I just told my boss I’m retiring this year — and now it finally feels real. How do I get myself ready?

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.