For some, retirement is a long way off! For others, it seems to be creeping up a lot more quickly than expected. The years have flown by and it’s time to start taking stock.
Many who visit me in their late 40’s to mid 50’s sometimes realise that they’ve put retirement on the back burner for a little too long. With taking care of the Mortgage and the kids… retirement saving was a long way down the list!
But for those ready to hang up the boots, whether at 65, 70 or beyond… what can you expect?
Many advise that a new kind of balance is required, one that takes a bit more planning than expected.
It’s good to start thinking about your vision for your retired life and the values you have that may drive those goals. Have you been planning travel? volunteering? hanging out with the grand kids? visiting more with elderly parents? taking up a hobby?
Strange tho it may seem, retirement and pure leisure hours only, can impact your health. Everything you’ve ever known has suddenly stopped. Routine, income and your network is no more which can have a big impact on mental health especially. Choosing to be optimistic about your future options is incredibly important.
Family relationships can also come under scrutiny. Suddenly spending 24/7 with your life partner may not be what either of you expect. Learning how to communicate what both of you need, while maintaining some sense of independence is vital!
Are you looking to replace the hours you spent working with something else? Some enjoy volunteering, others enjoy researching the family history or writing that book that you always put off, even learning a new skill or going back to school can be considered. Travel plans also need consideration – those who’ve traveled extensively during their work life may not wish to venture so far from home, others can’t wait to become intrepid explorers!
Often, what to do with the family home also needs consideration. Some empty-nesters love keeping their family home and it’s memories, others like to move on and downsize for less maintenance and possibly availing themselves of additional funds. Moving interstate to be near the family or a group of friends also needs consideration but taking on too many things at once can be a little overwhelming… it’s good to learn to pace yourself.
Managing the finances also requires careful consideration. Some find that their immediate spend in the first few years following retirement is much higher than they’d previously thought it might be. Funding travel or new gadgets may be fun, but if they haven’t been budgeted for, can impact the long term value of savings. Longevity risk is gaining a lot of exposure now, with many living well into their 90’s and hoping they don’t outlive their savings.
Who knew that ‘hanging up the boots’ could be so complicated?
It’s a great idea to sit down with your adviser and talk through your options. What works for one, won’t work for all, so setting and achieving what’s important to you is vital.