Is Retirement the Finishing Line?

Written on the 30 November 2023 by Parkside InvestorPlus

Whether you are self-employed or employed, anyone approaching retirement waits for the that ‘magic number’ – the day when your retirement savings suggests you can now retire.

However, how realistic is this magic number?

Before you finish working, retirement seems like the finishing line.

Once you pass it, you realise it’s just the start line for what is hopefully an exciting chapter of your life.

Then reality sets in!

Time to Celebrate?

Congratulations on your upcoming retirement!

We know it can be an exciting and daunting time, all rolled into one.

As a retirement planning professional, I can tell you that the two biggest concerns most people have are financial and psychological.

On the financial side, people worry about whether they'll have enough money to last the rest of their lives.

They also worry about unexpected expenses, such as healthcare costs or a market downturn.

Mental Health in Retirement

On the psychological side, people worry about losing their sense of purpose and identity in retirement.

They also worry about how they'll spend their time and stay connected with others.

Here are a few tips to help you navigate both the financial and psychological challenges of retirement:

• Get your finances in order. This includes paying off any debt, creating a budget, and developing an investment plan. It's also important to have a good understanding of your retirement income options.
• Talk to your spouse or partner. Make sure you're on the same page about your retirement goals and expectations. This will help to avoid any surprises or conflicts down the road.
• Downsize your home. This can free up cash flow and reduce your expenses. It can also be a good way to simplify your life and make it easier to maintain your home.
• Stay active and engaged. Retirement is a great time to pursue new hobbies and interests. It's also important to stay connected with friends and family.
• Be flexible. Things don't always go according to plan in retirement. It's important to be able to adjust your budget and lifestyle as needed.

Remember, you're not alone in this.

Millions of people retire each year and go on to live happy and fulfilling lives.

With a little planning and preparation, you can do the same.

Here are a few additional tips that may be helpful for upcoming retirees:

• Don't expect to feel like you're on permanent vacation. Retirement is a major life transition, and it takes time to adjust.
• Don't be afraid to ask for help. If you're struggling with your finances or your mental health, there are resources available to assist you.
• Enjoy this new chapter in your life! Retirement is a time to relax, pursue your passions, and spend time with loved ones.

If you are approaching retirement or have just entered retirement, and you are unsure how to navigate this new phase in your life, we can help you with sound, practical and tried & tested advice – contact us at Parkside InvestorPlus.