Every day we have existing or new clients come and talk to us about retirement. The most common questions:
- How much do I need?
- When can I retire?
- Do I have enough?
These are perfectly reasonable questions but very few people have actually pictured what retirement looks like. Having an understanding of what retirement looks like helps us answer the above questions, but more importantly it puts the focus back on this huge life change that is occurring.
So before you start thinking about the monetary side, step back and think about the life you want to lead in retirement:
- Are you going to join the growing number of grandparents that care for their grandchildren whilst their parents work? (Apparently, it will increase your life expectancy by 5 years)
- Will you be packing up, selling up and becoming a grey nomad here or overseas?
- Will you be calling the golf course your new office?
- Will you be driving your spouse mad with this new free time you now have?
It certainly requires some serious thought and planning, this is one of the largest lifestyle transitions you will make in your life. If you don’t plan for it, you might suddenly find yourself wondering what you are going to do each day, where you will be living and how you will be funding your lifestyle.
Research suggests that those retirees that all of a sudden stop working; without any plans for their time are more likely to suffer depression, anxiety, and cognitive decline.
Whilst this may be putting a bit of a dampener on your much-anticipated retirement, there are many things you can do to enrich your retirement experience. Volunteer work, transitioning to retirement through slowly reducing your workload or taking up new part-time work are some options that may be worth considering. We will explore these throughout the year in our video series.
Whether you plan on retiring in 1,3,5 or 10 years, now is a good time to start thinking about what your retirement looks like. This will help you build toward it financially but more importantly ensure you are psychologically prepared. Plans can change but having no plan may leave your retirement feeling very lackluster!