Planning on Retiring?
Congratulations!!
This is a time where you are going to reap the rewards of all your hard work.
For some, it’s something to look forward to and they cannot wait for that final D-day when they leave either the workforce or their business. For others, however, it can feel a bit frightening and worrying. Our emotions come into play and also concerns about heading into the next stage of life become the forefront of their thoughts.
Some people feel their identity is wholly wrapped up in their job and have no idea as to what to do for the rest of their lives.
Retirement is all well and good however how many times have you heard of people retiring and they’ve gone downhill, became depressed, disillusioned and even passed away.
Unfortunately, I have, so I’m going to touch base about getting ready for retirement!
There are a few phases to be completely successful at retirement. The following phases will include information about what to expect, what to do, plan in order to feel happy, have purpose and feel free.
Phase 1: Pre-Retirement
One question you really have to ask yourself – Are you ready to retire?
Just because you may be at the age of retiring doesn’t mean you have to do it. Do you really want to hang up your bootstraps? There is no right or wrong answer to the question, it’s what you feel that’s important.
If you want to work because you absolutely love it and you are physically and mentally able to do it then… keep doing what you’ve been doing until such time as you cannot or want to wind down. You know the old saying “if you do what you love, you never work a day in your life!” Having said that if you keep working, just make plans for the time when you are ready to stop formally working.
Some people keep working because:
· the job is their whole world
· they feel that the job is tied to their identity
· they’re making a difference
· they love what they do
· they’ve been at the organisation for so long that they consider the people they work with family
· they need the finances.
Getting ready!
…
Getting ready!
Now is the time to start thinking about the following and get it sorted, even if you’re 10-15 years away from retirement. You may need to adjust your circumstances to put you in a better position for when you do retire. These are some of the things you need to consider:
Pension entitlement
Check what you’re entitled to
What benefits you will receive
Check means testing
Timeframe
When do you want to retire?
What do you need to do to get there?
Financially - See a Financial Adviser/Planner & Accountant
Check value of current assets, income, savings, investments, superannuation and financial commitment.
Do you have enough money to sustain the lifestyle you want?
Housing – do you own or rent?
Travel – visiting family, friends, site seeing
Car – Cost of maintenance, rego, insurance for next 20 yrs
Children/family – are you giving them any financial support?
Health and wellbeing – medical expenses, preventable health checks
Pets – vet fees, food, kennels/catteries etc
Hobbies – maintaining or trying out new ones
Unforeseen emergencies
ore time fully enjoying your new life on your terms!
This is your time! Plan for it and enjoy it.
How much money do you need for retirement? When can you access your superannuation? (if you have some)
Debt – is it better to roll all your debt into one bundle, making extra repayments, pay on time to avoid fees, shop around for best prices eg; electricity, gas, banks, insurances etc
Insurances – what insurance will you need? Is it adequate for your needs?
Health
Car
House
Pet
Funeral
Other
Budget for retirement
Housing
Electricity/Gas
Food
Communications
Household goods and services
Clothing & Footwear
Transport
Health services
Leisure - Figure out your weekly and annual expenditure - Budget accordingly
Superannuation
See your superannuation account manager
When can you access?
See financial adviser-planner/accountant as best way to manage your money and if there are any tax concessions
Estate Planning - Last will and testament – ensure you have this up to date and is valid
Consider making lifestyle decisions
Can you stay where you live or do you need to downsize
Is one car enough?
Daily travel – if you’re not travelling to work anymore will public transport save you some money?
Phase 2: Retirement
When retiring it isn’t black and white, everyone feels differently and will want to do things at their own pace.
Some people feel a sense of freedom upon retiring at the beginning. They feel excited, relieved to be away from working life. Retirement in its early stages usually involves reconnecting with family, friends, spouses/partners, getting into hobbies, travelling and sometimes even starting up new businesses.
Others choose to rest (a restoration of self), where each day is just flying by the seat of their pants, no planning, just resting and having a home holiday as working for years in demanding jobs have taken their toll on their energy.
Some settle into a formal routine where everything is planned, waking up at a certain time with a plan in place to action. Continuing a working day however just doing tasks/activities they want to do.
Downsides of retirement
Now retirement may sound wonderful, and it is, IF you have a long-term plan. You can look on the first phase of retirement as a honeymoon stage however when the honeymoon wears off, it’s a whole different ball game.
Some people look forward to it so much that once they really settle into it, it can feel less exciting and not exactly what they had hoped it would be and hence become disenchanted and somewhat disillusioned. Boredom, loneliness and feeling not wanted or needed, useless can come into play and if you’re not careful can lead to depression.
For some, they are still feeling the day-to-day struggle as time goes on to meet a standard of living and if so, that is where help is required to help you figure out what options you have and what you can do.
I cannot stress enough how important it is to plan for the future however still live in the present.
Phase 3: Re-direction
This can be a challenging time as this is when retirees can feel lost, they’ve gone through their to-do lists and have lost their purpose and start to second guess their retirement decision and experience.
This is also a time where retirees start to create a new identity, one that is different to pre-retirement and can take a little time to sort out and execute.
The good news is, once you build new foundations for your life, your identity, you will then often be able to let go of the past (the pre-retirement life), get closure on it and move into the next phase to enjoy retirement as it’s mean to be.
Phase 4: Stability and Understanding
This stage is about 15 years after you start your retirement life. ‘Most’ retirees will feel contented and settled, living a relaxed simplified life.
Health is the most prevalent issue during this stage. Retirees are focussing on maintaining their health and especially their independence.
Some move into retirement villages with healthcare, amenities, activities and friends/family close by.
Now, not every retiree will experience each one of these phases or succumb to the downside of retirement however will in some way experience one or more once they stop working.
Purpose in life
Just because you are going to retire, it doesn’t mean that there is nothing else out there that will give you a sense of purpose. You are not retiring from life! Retirement is at its very simplest, moving away from ‘work’ and refocusing on something different in your life.. maybe doing some things you’ve always wanted to do.
When you are planning to retire then you need to be preparing for it and take time to consider where you will find meaning and purpose because retirement is going to be such a wonderful new chapter in your life. So, plan to take time out to recharge, rest and plan some more.
You’re going to have time on your hands so consider:
· How will you fill your time in when retired?
· What do you enjoy? Your interests?
· What are you passionate about?
· What are some hobbies that you’d like to focus on?
· Do you want to join a group or do some classes (eg; cooking, art, men’s shed etc) or do voluntary work?
· Do you want to make a difference?
· Do you want to study? Increase your knowledge.
· Chase a dream maybe? ...go on that trip, create something?
· Investigate the family tree
· Something else, horses for courses – do what makes you happy. Find that thing or things that you enjoy!
Write a to do list – the things you want to do (short term and long term), that you’re passionate about, that will fulfill you and be fun. For example:
· hobbies
· joining a group
· study
· travel/getaways
· eating out
· chase a dream?
· investigate family tree
· volunteering
· working part-time
· activities with family and friends
The Transition
Transitioning into retirement can be fraught with a collection of emotions and uncertainties/doubts. The most important thing to do is PLAN your transition.
Thoughtfully plan and go through what you need to do to retire financially and emotionally stable. This can reduce the amount of overwhelmingly stressful emotions and you can then spend more time on doing the things you want and like to do.
So, now it’s time to do some work on planning for the future, looking at other possibilities and opportunities so you still have purpose and feel fulfilled, be financially secure and emotionally stable so you can spend more time fully enjoying your new life on your terms!
This is your time! Plan for it and enjoy it.
