Retirement Planning tips
By Cynthia Munro and Craig Wylie
Increasing life expectancy means that we will potentially be spending the equivalent of half (or more) of our working lives in retirement. This is a significant portion of our lives, therefore we should be planning how we will meaningfully spend the time, as well as planning our finances to meet our desired lifestyle in retirement.
Lifestyle Planning
Here are questions for you to consider when preparing for your new lifestyle:
- What are my concerns; what will I miss when I leave the workforce?
- What provides meaning and purpose for me and what does this translate to in the future?
- What will change with my spouse/partner, family and friends?
- What interests provide meaning and fulfillment?
- Will I want to continue working in a different capacity – what might this look like?
- What type of activity might provide satisfaction and meaningfulness?
- What new learning might I like to pursue – e.g. a hobby, intellectual pursuit or an interest?
- How do I ensure optimum physical and emotional health and well-being?
- What do I need to think about in relation to my location; how will this impact me and significant others?
- How will my social life differ and what do I need to do to remain connected?
- How will I seamlessly transition? What is my action plan?
Financial Planning
Having financial strategies and structure to facilitate the achievement of financial and lifestyle goals in retirement is vital to a happy and successful retirement. Here are some questions to consider:
- Do I understand my present financial position and timelines?
- Assets/liabilities; income/expenses; time frames pre & post retirement?
- What could impact on my financial security before and during retirement?
- My financial and lifestyle goals and objectives
- What lifestyle would I like/what lifestyle can I afford – what will it cost?
- What financial/lifestyle goals do I need to meet before retirement – cost?
- How do I get from here to there?
- Cash Management and savings:
- Am I making the most of my current income?
- What do I need to do differently?
- Investments:
- What keeps me awake at night when thinking about my finances?
- Do I understand risks and returns of different investment/KiwiSaver options?
- Financial Plan:
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- Do I need to engage an Authorised Financial Adviser? Do I require a referral to a trusted AFA?
- Can I prepare my own plan using resources available (e.g.Sorted website) and/or with guidance?
Further information can be found here
