Getting Ready for Retirement – What Not to Overlook

Preparing for retirement is a process full of mixed feelings. On the one hand, you’re excited to wave goodbye to long working hours and finally dedicate a big portion of your day to those numerous hobbies. On the other hand, you feel anxious about what the future holds and whether your retirement savings will be enough of a safety cushion for you to land on once you stop working. However, with proper planning and foreseeing the potential financial pitfalls and learning how to avoid them, you’re sure to transition into the new stage of life in a secure and worry-free manner. Read on to learn about four things you shouldn’t overlook once you start getting ready for retirement.

Planning your retirement budget and expenses

It is important to start planning your retirement budget as early as possible. Sure, you can rely on your pension, but having some sort of a financial cushion is necessary in order to spare yourself the hassle of stretching your pennies endlessly. Many people who are preparing for retirement are worried that they might outlive their pension savings, and for a good reason. To ensure your pension savings don’t run out too soon, you need to have a clear vision of where your money is going – you can do that by making a retirement budget. Start by jotting down all the expenses and breaking them into two categories – essential (like food, water, electricity and rent/mortgage) and optional (hobbies and travel). That will give you a full insight into your finances and a heads-up on what you can expect by the time you retire, and it can help you prepare for whatever the future may bring.

Getting proper care is crucial

Another part of getting ready for retirement is preparing for going to a nursing home. Have in mind that, eventually, you’ll get to that stage in life when you’ll need to look for a good retirement home in order to ensure you’re in good hands. You need to make sure you’re getting the best possible care and that you’ll be able to live on your own terms and enjoy in an amazing social environment. Consider investing in  quality aged care to make sure you are provided with comfort around the clock and surrounded by kind staff that will make sure you get proper individualized care. Your wellness and overall well-being aren’t something you should compromise on, regardless of your age, so look for the best aged home that will accommodate your needs while you enjoy your golden years.

Creating an emergency fund you can rely on

Once you stop working, you’ll need a proper financial cushion to fall back on in case of emergency without putting your other financial goals in jeopardy. To ensure you don’t fall prey to longevity risk or some unplanned withdrawals (and consequently, running out of retirement funds) you’ll need to create a contingency fund. These kinds of funds can really help you out in case you’re relying solely on your fixed income. No one knows how long they’re going to be around, but underestimating your lifespan can leave you with an empty wallet and nothing to rely on. Health is another factor you need to take into consideration – the older you get, the more you’ll have to pay for healthcare. Experts recommend we create a fund that can support our lifestyle for at least three to six months in case an emergency strikes, thus giving us enough time to get back on our feet. Therefore, it’d be wise to prepare in advance and invest in high return assets while you’re still young – you never know what’s around the corner.

Continuing to be yourself, even after you retire

Many people look forward to retirement since they can easily spend their days doing what they love. Retirement shouldn’t change who you are and what you like to do – on the contrary, it should be the time when you focus on yourself, count your blessings and enjoy your golden years. It’s important to continue to be yourself even after you retire – a leopard can’t change its spots. You’re like that metaphorical leopard – you need to stay true to your nature. If you’ve always liked traveling, now is the time to go and discover the world. If you’ve always been a workaholic, you’re more likely to find something new to work on. Doing what makes you happy and constantly setting new goals is necessary for leading a fulfilling life.  

There are many ways you can prepare successfully for retirement and make the whole process go more smoothly. By following our tips, you are sure to venture into retirement worry-free and live a comfortable life while you’re well into your sunset years.