Take Time to Plan
Source: New Retirement
While we’re in the daily grind of working for a living, we often visualise life after retirement as happy, stress-free relaxation. Getting a little R&R is certainly important, but there is a limit to the amount of napping, puttering around the house and daytime television a person can take. Without a plan for life after retirement, many retirees find themselves feeling vaguely unfulfilled and restless, craving something more but not knowing what that something might be.
Focusing on the financial aspects of retirement is important, but the personal side of your retirement plan is just as important, and could ultimately guide how you use your retirement assets. When you retire, you are agreeing to live off relatively fixed finances. As such, you really need to know how much you are going to spend when.
You will want to think about how your spending levels might change over time. Most people spend a little more when they first retire. Then, less as they get a little older. And finally more – mainly on healthcare – near the end of life.
Get the Big Universal Decisions Right
As you transition to retirement, almost everyone will make a lot of critical decisions. Be thoughtful about your choices and try out different scenarios – especially if you do not have significant savings. These decisions can have a dramatic impact on your quality of life in retirement:
Taking a long vacation or sabbatical to recharge instead of retiring.
Working a little longer: 1) You earn more income for a longer period of time. 2) You can save more. 3) You can delay tapping into existing savings.
Delaying the start of pension payments.
Deciding where you will retire? Try renting in, or spending time at a retirement destination, before packing up and moving.
Try living on the budget you need to stick to in retirement.
Ensure your travel plans are budgeted as part of your retirement plan.
Consider whether you will need to buy a new car or renovate your house?
How will you fight ‘retirement boredom’ and what activities and hobbies might you take up.
Ensuring that you will have the funds you need to keep yourself entertained, and living your best life, and figuring out if you can retire securely can be stressful. If your struggling with your retirement planning, please reach out as we can provide valuable support and guidance.