By Ross Langsford
We spend a lot of our time thinking about and planning the financial aspects of retirement, but it’s just as important to consider the lifestyle part too. Taking into account how you want to live has the power to make a great retirement meaningful, and missing out on it might make you feel like you have lost your purpose.
There are three great influencers of happiness in retirement according to the research prepared by Dr Joanne Earl, UNSW School of Psychology retirement and careers expert. She presented a convincing argument that planning for retirement means a combination of wealth, health and choice to retire – rather than it being chosen for you.
Retirement planning is about you – your needs, desires and aspirations. It’s something that you should do on your terms.
So what does a successful retirement look like?
Dr Earl found out that a successful retirement means feeling respected, being busy, and enjoying life.
When a person is well adjusted to retirement, he or she no longer misses work or being part of the workforce. They also feel comfortable about their financial situation.
Get ahead of your retirement by considering these questions.
When will your retirement begin?
Whenever the thought of retirement pops in your head, are you excited or scared? Retirement is a life changing experience and it only happens once in a lifetime so it pays to figure out in advance when you want to do it. The earlier you prepare for your retirement, the better you can choose which option suits you.
What is your current cost of living?
Perform a careful assessment of your current expenses. Work out what funds you have at present, how much you might have in the future and where you can source it. Whether you’re nearing the senior age or you’re still in your 40s, you might want to watch your spending and consider adding a little more to your superannuation.
What do you want to do?
Plan what you’re going to do and consider how your needs might change in the long run. You might want to use your retirement for home renovations in the first year, travel the world for the next couple of years, and then, later on, take up a new hobby. Planning for the long term makes you financially and emotionally prepared.
What will your social life be like?
If you’re a social butterfly, losing constant interaction with friends and colleagues can be unnerving. However, retirement can be an exciting event if you’re a homebody. If you’re the former, it is advisable to join clubs or groups so you can still find social interaction during your retirement.
While these questions are meant to direct you on the right path, you’ll need more information and practical advice. If you want to find out more on how you can better prepare for your retirement, get in touch with us.