5 things you should consider when planning retirement

Retirement is often associated with happiness and feelings of freedom. However, for many, when they finally reach retirement – they become financially stress and worried as they realise they might not have enough savings to fund their dream retirement.

If thinking about retiring causes you anxiety, it’s time to solve your stress, shift your mindset, and begin preparing for your golden years as early as you can.

Most adults and professionals tend to set retirement aside and then regret it later in their lives. Some people don’t consider how a well-planned pension can benefit them for many years after they stop working. On the other hand, some people don’t have enough time to plan their retirement because they are so busy with the ins and outs of their daily lives.

What is important to recognise is that your retirement plan could determine your future happiness and comfort. This is why it’s smart to start planning for it now, while you still have time to create your ideal future.

When planning your retirement, there are many things that people of any age should consider.

Here are 5 questions to ask yourself when preparing for retirement:

What is an ideal retirement for you?

People visualise retirement as sitting on the couch or beach all day long, with very few things to occupy their days. However, your retirement doesn’t have to be boring or unproductive. You can decide how you want to spend your years.

You can choose to spend your money on travelling or doing things you didn’t get to enjoy during your younger years. Meanwhile, some professionals who have gotten used to working all their lives decide to retire gradually and transition to retirement. This may involve shifting to a simpler, down-to-earth job to keep active and healthy.

Do these options seem appealing to you, or do you envision your retirement going very differently? The first step to planning your retirement is thinking about how you want it to look. The rest of your decisions will stem from there.

At what age do you want to retire?

The most common retirement age in Australia is 65. However, life is unpredictable, and you never know when you may have to stop working due to an unexpected illness or to look after sick family members.

In this case, it is better to have your retirement planned ahead of time. Regardless of age, everyone should be financially and emotionally prepared for this stage of life. A robust plan may just help you enjoy your post-working life the way you want.

What do you enjoy doing?

An ideal retirement doesn’t have to mean spending all your money travelling to every country in the world. Although travelling can be an exciting and fulfilling experience, it’s not for everyone.

You may want to look for groups or organisations that share your passion and life mission. Community advocacy can enhance your social life and give you a fulfilling purpose in your twilight years.

Consider what things you will want to be doing when you are older and map them out into a sound long-term plan.

Do you want to move?

If you’ve lived most of your life in one location, moving homes or cities may have come to mind once or twice. Perhaps you want to move to be closer with your children and grandchildren? Or maybe you want to move to a more relaxing, holiday-feel coastal town?

While the decision to move can be easy if you have the funds to do so, it’s also a significant step to take. You will need the support of your family and friends as you age, and you may also want to consider how this move will affect your finances. Consider seeking financial advice to help plan for any big life changes like moving into retirement.

Can you afford the retirement you want?

Our dreams in life are free. It’s easy to visualise a retirement goal, but in reality, it’s not as easy to reach your goals because it involves money.

Planning your finances in retirement should go hand-in-hand with planning what you actually want to be doing in retirement.

While it’s great to have goals in retirement – like travelling the world or taking up a new hobby – it’s essential to ensure that you can afford your preferred lifestyle. The last thing you want is to run out of money halfway through your retirement and still have another ten years to fund.

A financial adviser can help you build an effective retirement plan – this will give you peace of mind that you can enjoy the retirement you want without having to stress about money.

What should you do next?

Planning for retirement can trigger anxious feelings and financial worries for many as people realise they have not created a financial plan for their golden years.

But retirement is a stage of your life that does not deserve to be set aside. Plan your retirement as early as possible so that you will be prepared for anything life may throw your way. We hope these considerations help you as you start planning for your retirement. Newcastle Financial Planning Group can help you with your financial planning for retirement.

Want to learn more tips to retire debt-free? Check out these interesting blogs!

• How to Effectively Boost Your Retirement Income
• Early Retirement in Australia: Is It Possible?
• Retirement Planning in Australia: How much do I need?

We can provide you with financial advice on making the most out of the money you have saved for your retirement. That way, you can be comfortable spending the rest of your life with your loved ones the way you planned. Contact our expert advice team today!