Although the daily grind of getting up in the morning and trudging to work can seem never ending, the next stage of life, known as retirement, will eventually arrive. Whilst the prospect of filling one’s day with leisurely pursuits may appear a dream, it’s common for many Australians to feel lost and bewildered when the time finally arrives. The loss of routine we have become accustomed to can feel unsettling and like a major shock to the system.
To make the transition from employment to retirement a little easier, this guide outlines a number of important things to do both before and during retirement.
Make a Plan
The first step is to create a Retirement Plan. Creating a retirement plan is an effective means of ensuring you are financially stable at the age of retirement and able to spend your retirement doing what you love most. When drafting your retirement plan, you might like to ask yourself the following 4 questions:
What are your lifestyle goals?
Where do you want to retire?
What is your Superannuation balance?
How much money will you need to cover the basic costs of living and how much more money will you need to achieve your desired lifestyle goals?
Getting your finances in check
To ensure you can retire in comfort, you need to calculate the expenses you will have once you retire. These expenses may include living expenses such as your mortgage and utilities, medical costs which can increase with age, car expenses and travel expenses.
Generational wealth, namely assets passed down from one generation of a family to the next, is another consideration when planning for retirement. Generational wealth can help those you leave behind achieve financial security and may include stocks and bonds, property, a business and savings.
Location, Location, Location
Choosing where to spend your retirement is another important decision. Factors to consider include community connections, the location of your family and friends, your level of independence, your preferred lifestyle, well being requirements, transport and accessibility as well as how much money you have accrued by retirement age.
You might like to remain in or near your existing community, or you might like to opt for the more relaxed lifestyle that a sea- or tree-change offers.
Although creating a retirement plan and calculating financial security are essential when planning for retirement, there are lots of other things to do and look forward to. Without the regular commitments of paid employment, retirement is an excellent time to start ticking off your bucket list. For many retirees, this stage of life offers an excellent opportunity to contribute to their community by getting involved in volunteering roles and social activities.
Let’s get physical
More free time means more opportunities to get moving! Physical activity has many benefits, especially as you get older. It reduces the risk of many major diseases and illnesses and improves your mental health. Physical activity also offers opportunities for social interaction, something that commonly diminishes once employment ceases. If you haven’t had the opportunity to engage in physical activity for some time, it’s a good idea to speak with a health professional first and get the all clear, as well as some advice about what exercise may suit you best.
Planning for End of Life
Nobody likes to think about death, especially their own, but planning for the end of one’s life can provide peace of mind. End of life planning entails setting out detailed instructions for your loved ones on how you want your final moments to look. These wishes are centred around personal choices and include factors such as burial arrangements, medical care preferences, living arrangements, wellbeing and lifestyle.
Another important part of end of life planning is making a legally binding Will. Writing a Will can help reduce uncertainty and potential disputes with how your assets are distributed. It allows you to list all your possessions and decide how you want them to be distributed. Willed is an online Will platform that makes this process of writing a legally binding Will easy and affordable. Willed helps you write, update, and store a copy of your Will easily and effectively, and offers a range of support along the way including email, live chat and phone support. Register an account with us today and see how easy writing a Will can be.