With the average age of retirement jumping from about 53 to 61 over the last 5 years, most of us now have plenty of time to figure out this stage of our lives. This is a fortunate trend in some ways because good planning is crucial to securing an enjoyable retirement. By focusing on the 3 major decisions below, you can transition smoothly into the retiree lifestyle.
The first decision is what you would like to do with your money – this entails planning during the years before retirement so that you’ll end up in a financially comfortable position.
Do you want to travel? Or are you hoping to help out your family? Set money aside in a savings account that accrues high interest or speak with a financial adviser about other ways to maximise returns on your existing money so that you can achieve your goals.
If you aren’t usually the kind of person that makes weekly budgets, now is a great time to start. Knowing an estimate of your essential expenses each week will allow you to plan around the basics. If you will be approaching the age of 60 upon retirement, a senior’s discount card and aged pension can provide support to bolster your income. Talk to a financial planner, Centrelink, or the Department of Communities for further information.
Where and how you will live
It’s not always possible to plan your living situation for retirement, as it is difficult to predict what could happen in the future. Ideally, staying at home is the preferred option for most retirees. However, our needs change as we age. Lifestyle problems such as losing a driver's licence or sudden ill health may mean the house that suited when you first retired is no longer the best option.
While it is not feasible to prepare for every eventuality, coming up with a Plan B helps with peace of mind. Ask yourself questions such as:
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* What accommodation will suit my needs?
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* Where is public transport located?
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* How is my or my partner's health?
Answering these questions will give you a firm grasp on what you need from housing and aged care. Not-for-profit organisations like Ozcare are great options to consider as they provide support for multiple stages of independence, from weekly checkups to nursing homes.
Who you want to be
Retiring comes with a lot of decision-making, but it is a freeing process too. The best part about retiring is having time to figure out who and what you want to be. What interests you pursue, what roles you take on, what goals you work towards… these are all things you suddenly have ample time to think about.
Some retirees use this time to bring a business to fruition, while others volunteer with community groups. Many people take this opportunity to spend more time with their loved ones. It may not be easy to choose what to do with your time, but let your own interests be your guide. See what's out there in your local community or abroad to keep your mind and body active.
After setting all these plans in motion, you may be wondering 'What next?' Well, the simple answer is: ‘Relax.’ Enjoy the satisfaction of knowing you have put your future into motion!
