How to have a rewarding retirement

Written on the 3 August 2022 by Parkside InvestorPlus

Your retirement can either be viewed as ‘the end of a life phase’ or ‘the beginning of a new life phase’.

Retirement may once have been thought of as game over – however, with our ageing (boomer) population, we’re hearing more and more positive vibes about the retirement phase of life.

In times, the prospect of retirement immediately conjured up thoughts of, what am I now going to do, I’m not valued any more, and potentially, loss of self-esteem and worthiness.

The enlightening news is that these thoughts are no longer relevant.

Most pre-retirees will have spent the majority of their lives raising families and working – either for themselves or as an employee.

The point is, during this phase of life, there will have been many sacrifices in terms of your money, time, and attention.

The next potential 20 years of your lifetime could be a period of freedom – free of work and the chance spend more time with family and other interests - but don't waste the opportunity.

And if you’d like this period to be free of any money troubles, then the only caveats are, own your own house and use your super well.

A survey of 700 retirees provided some very interesting feedback on their retirement experiences. [link to survey article]

While the responses were wide and varied, there were some key themes.

Choosing your retirement time frame

Being able to choose your retirement time frame not only empowers you, however, also grants you the power of choice.

Imagine being forced to retire by a certain age or point in time – outside of your control.

The immediate feelings would be loss of power, independence, and decision-making.

In this scenario, your entry into retirement will be filled with animosity and possibly anger.

However, if you have control over your retirement decision, you are then more likely to enjoy your transition into retirement.

Planning your retirement in advance will have immense benefits for the years to come.

While you may think you do not really have control over your retirement time frame, simply taking the time to prepare for your transition into retirement is exerting some control over your destiny.

Trial run your retirement

Another great way to ease into retirement is to imagine and experience what their retirement could look like.

Test driving your retirement goes well beyond finances.

While you are still in employment earning a salary, you can broaden your scope, and spend time thinking and experiencing what your retirement could look like.

Dedicate some time, while you’re still working, to take a test run at retirement and think about;

• What will your life look like when work is no longer mandatory?
• How will you spend your time?
• What will give you Purpose?
• Where will you live?

Research has shown that planning for retirement while you’re still working is one of the best things you can do to ensure that you’ll have a great retirement. 

So, make it a priority, it’s one of the keys to a great retirement.

Your Goals in Retirement

Knowing what you want to do in retirement and developing goals and aspirations that matter to you is vitally important.

Imagine going on an overseas holiday and not planning!  You would not.

So, start planning for your retirement.

Here are some steps to think about;

• Fully understand your finances and financial goals, e.g. will you be mortgage free, how much will you want in yearly income, how much do you intend to leave as inheritance etc.
• If you’re still working and your super balance is not enough, then you will need to start topping up.
• At some point you will need additional health care in your retirement – has this been factored in.

It’s hard to cover off on every single event – this is where your financial planner can help prioritise your actions.

If you’re approaching retirement or if you’re already retired, and you’re concerned about maintaining a comfortable standard of living in an environment of rising costs, come and see us at Parkside InvestorPlus for a review of your current situation, (02) 9899 4899.