If things do not go awry, retirement is a phase of life that can bring a lot of creative happiness, satisfaction, and peace. While it can be a really fulfilling time allowing us to find pleasure in small old-world things again, retirement can also hinder you in one special way — financially!
Lack of decent retirement savings
During your working life, you tend to feel a lot more confident about your bearings simply because you are earning a monthly figure (make it weekly or fortnightly if you will). Once you retire, the shoulders droop a little because you are not any more on your own; you are not an active earner and may have to fall back on the generosity of time. This, however, is not the case if you have a decent savings kitty. What I like to refer to as the post-retirement nest egg!
Baby boomers got it wrong in their heads!
The baby boomer generation has erred miserably in terms of retirement planning. Today, they find themselves way too short of the figure needed to retire in peace. What went wrong? They did not plan till it was too late. They felt that retirement is a folklore and the time never actually arrives. Newsflash: it does!
What things you need to sort out (apart from money) before retiring
Many have already talked about what savings strategy to use to retire comfortably. Let me put up a few words about what else do you need to ponder over apart from the crucial question of money.
Pursue some kind of activity to keep brain stimulated
A brain focused on work of one kind or the other all through the professional life cannot suddenly be detached from it (it can, of course, but there are consequences to that). So, post-retirement you need some kind of a brain-stimulating activity, one which will keep you on your feet constantly. You can think about blogging, dabbling into horticulture, reading ancient Greek, or some such things which interested you when time was a tyrant during your working years.
Figure out the location of emergency and healthcare
At least a few months before you retire, figure out how well connected to the city you are. You need to know where the closest emergency service and effective healthcare may be. Also, you would like to believe that there is an efficient system of public transport quite close to where you live. Really, no one wants to drive when age catches up! In short, you have got to have a working support system in place.
Downsizing, are you?
Apart from this, you must also think hard on whether you will like to downsize and use your reverse mortgage options, buy a granny flat, or keep things the way they are.
Finally, insurance!
It is not enough to have an average insurance plan. Only the one with maximum endorsements and minimum exclusions will do. Of course, as you age, the premiums shoot through the ceilings so it is wise to plan in advance.
How are you planning your life before retirement? Is there some vocation in particular you would like to pursue?
