Important Issues to Consider in Retirement
Aside from dreaming of spending more time perfecting a golf swing, travelling to exotic locations or playing with the grandchildren, often little thought is put into how to fill the many years retirement could have in store.
When preparing to leave the work force, some people focus so much on never having to face a stressful workday again that they overlook many important issues.
The first and most obvious focus should be on your income requirements.
Enough for a good lifestyle
For many people retirement will give them the first real block of time they have ever had completely to themselves to do with however they please. Some may want to travel and others may have hobbies they want to immerse themselves in. Others may choose to move closer to family or make a ‘sea’ or ‘tree’ change. Some may do all of these things!
To make the most of your retirement years, your nest egg must be large enough to allow you to live the life you desire. It would be a shame to have a boring and unfulfilled retirement because you discover too late that you don’t have the means to afford activities that your peers are enjoying.
To explore how much you might need in retirement, calculate roughly how much it might cost to pursue your interests fully each month. Then use our Quit Work Calculator to see how soon you might be able to retire to pursue your interests full time. The answer might surprise you. You might be able to retire sooner (or better) than you think.
Can you predict your health in retirement?
Secondly, many people plan for life beyond work assuming that they will remain healthy and vital. For most people this will prove true, but sadly, others might not be as healthy as they had hoped.
Being less healthy in later years will mean facing additional pharmaceutical and medical expenses. You may have extra charges from travelling with mobility issues, assuming travel is still manageable. Aged care can be costly, especially where high level care is required.
The key thing to remember is that while you are planning for your retirement in a financial sense, you also need to have a plan for how you will spend your time. Balancing both aspects are fundamental to achieve a rewarding retirement.
Happiness in retirement includes pursuing your interests
So, what is there to do if you find yourself getting bored with so much free time?
Well, some people pursue sporting interests like golf or bowls. Others take to gardening or painting. Some even take off and travel Australia or the world. For others there’s family.
Regardless, in retirement (like in life) a life filled with interesting activities is a happier, more fulfilling one. So it’s important that you have interests to pursue, and that you have the income to do it.
For some, the interest and income from a new variation of work fits both criteria. Depending on your skill set, you may be able to set up a micro-business. All you have to do is get creative when looking at your skills and abilities!
If you are a retired teacher there is myriad opportunities including working as a private tutor or providing after-school assistance, coaching sporting teams, or even thesis proofreading for university students. Local universities often have casual tutoring positions that may be suitable. If maths or accounting is your forte, use these skills to help small businesses manage their books.
Handy with tools and enjoy fixing things? You could find yourself in demand by those in your area who are working and have no time or skills to do odd jobs themselves.
Or what about ‘volunteer vacationing’? If you’d like a travel experience with a difference, you may wish to combine it with volunteer work. Sharing your interests with others or using your skills in a new way could certainly enhance your post-work years.
And if that new “hobby” produces an income, all the better. Assuming you’ve budgeted for your retirement and your investments produce the income you need regardless, even a small paying job could be a boon.
A new you: reinvent yourself in retirement
Many people identify themselves according to their job title or profession. For this reason, retirement can leave you feeling like a piece of you is missing. But retirement can be a terrific opportunity to give up that old identity and reinvent yourself.
You can be a grandparent, sports enthusiast, volunteer, book club president — the sky’s the limit!
In many ways, re-inventing yourself as a retiree can be as challenging as being a success in your previous vocation. The key is to establish your priorities, set goals that work for you, and keep going until you reach them.
Remember though to keep it fun. Nobody wants boring in retirement, but nobody wants stress either.
And remember especially to budget carefully. You might want to reinvent yourself, but if you don’t have the money to live your new life you’ll soon be very stressed out by your lack of funds.
Retire happily, retire well
Leading an interesting and fulfilling life in retirement isn't complicated, but a little planning early can go a long way down the track. Begin budgeting for your interests now, and use the Quit Work Calculator to explore how long you might need to work until you can retire comfortably.
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