There are fundamentally Five Retirement Issues that everyone should consider if they are going to retire anytime soon! Savings, income, expenses, health and time management. If you have a plan for each that meets your needs in retirement you are well on the way to a successful and satisfying retirement. Many people do not think about retirement until they are heading out the door. Either voluntarily or forced out in a corporate restructuring or downsizing. Don’t wait, develop your plan now!
Five Retirement Issues
Have You Saved Enough
How much income will your savings generate? Post investment advisors assume 4%. Can be drawn down each year. This number assumes a reasonable probability that your savings will last you well into retirement. When you add income from other sources such as pensions, will you have enough? If not, keep working and beef up your savings.
Verify Your Income
How much income will you have in retirement? Add up the income from your savings, pension, investments etc. How does this number compare to your current income? If not enough should you work longer, save more etc?
Review Your Budget
Review your budget now and how it will change post retirement. What expenses will disappear? Will you have new expenses? Travel, new car, home renovation, upgraded and health issues come to mind.
Most people will have up to ten hours every day to fill which were originally filled by work. How will you fill these hours after you retire? Many people find it difficult after all the travel and the Home projects are completed. What is your long term time management plan?
How is Your Health
Your health can play a huge factor in retirement. Not only in terms of enjoyment but also from a budget perspective. Be realistic and plan accordingly.