Making the transition into retirement means that you will have lots of spare time to do the things that you want to do, and participate in activities that you may not have had time to before.
You may wish to take up golf, travel around the pacific on a cruise ship, take a holiday around Europe, become a live-in nanny for your grandchildren, work part time hours, or stay at home and volunteer for a local charity.
However, in order for this to happen, it’s extremely important that you have planned ahead and set aside funds for you to live comfortably on.
When you are creating your retirement plan, it may be beneficial for you to take note of any hobbies or activities that you wish to pursue once you begin your life of leisure. This means budgeting for activities on top of your general living expenses.
ipac financial expert Colin Lewis says that if you don’t plan for your retirement, then you may just end up relying on the government provided pension, which may not be able to support the kind of retirement life that you wish to lead.
“You can’t lead the life you want in retirement because you don’t have the resources to carry through,” stated Mr Lewis.
“You want to have the financial backing to achieve your goals and objectives in retirement – so the thing is, if you don’t plan for it you’ll find that one day it will come along and you’ll be unprepared.”
Leaving retirement planning to the last minute, or not preparing for it properly means that you may potentially experience a substandard or unhappy retirement.
Planning ahead for your retirement will help you to identify the things that you want to do, and ways to fund them.
“The first and foremost is determining what some of these goals and aspirations are in retirement and then have a savings plan to achieve that,” said Mr Lewis.
After you have worked out how much you need for your retirement years, you can then determine what age you wish to begin your transition to retirement.
It’s also important to determine whether you wish to keep working part time and ease into the retirement lifestyle, or quit working altogether.
Planning for retirement is something that can never commence too early, in fact it is more beneficial for you to begin in your early years than leave it until the last minute.
we can help
If you are thinking about planning for your retirement, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website.