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Manage Your Money
It's possible that you could find yourself retired for the same amount of years that you spent in the workforce. How you manage your money is going to be a key factor in how you live out your retirement.
Probably the first step you should take is to get advice from an objective, experienced planner. Creating a financial plan will help manage your fears, as well as your money. Be sure to ask yourself what you want to do during retirement and budget that into your financial plan. It may be helpful to keep in mind this general rule of thumb: only withdraw four per cent of your savings per year.
Living off retirement savings indefinitely may be an option for some; however, continuing to work in some capacity can be beneficial for your bank account as well as your overall health.
Supplement your retirement income
People are reaching retirement in much better health than in the past, and are physically and mentally able to remain relatively active. It is natural to want something in your life that will give it meaning. A too abrupt transition into a "life of leisure" after a fully active life can be detrimental to health and mind. Your years of expertise are very attractive to employers and this can be an opportunity to simply scale back on your hours, and instead retire gradually, over a number of years.
Working during your retirement years will give you mental gratification, intellectual stimulation and human contact, and you'll have less to worry about financially. Not only will you have more money to live off in the present, you'll also need less in savings before you stop working full time.
If you don't want to continue working where you have for years, or if you've been "forced" into retirement, take this time to consider a career change. Draw on what you have learnt throughout your life or what you enjoy doing to create a supplemental income. There are many avenues to investigate, such as:
- Freelance writing
- Tutoring
- Freelance photography
- Starting a business
The important thing is to do what makes you happy and keep doing it. If the day comes when you can no longer do that, find something else that you can do. The bottom line is that retirement no longer means years ahead of you doing nothing. Instead, keep setting that alarm clock because you have a day filled with activity. Exercise your body and mind. Surround yourself with positive people who are also continuing to contribute and are staying active. Keep making plans and setting goals.
By staying active in all aspects of your life, you are more likely to have the physical and mental health to ensure that your retirement years are enjoyed to their fullest.
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