Retirement: Major transition

Photo: Contributed

Retirement is a major transition point for most people. Life expectancies have increased and with that, the amount of time we spend in retirement will only be expected to grow. Aside from the obvious concern of not having enough income to last you through those retirement years, a solid plan for all the other areas that make up your life has never been more important.

A financial plan is a good beginning but there are many other factors that add up to the difference between the life you want and the one you hadn’t really planned on. It’s not that you need to get all the answers right as much as it involves getting a complete picture of where you’re at, what resources you have available to you, what you would like to do in those years ahead, and what challenges might rise up and prevent you from living the life you’ve planned.

The areas we help clients to focus on when doing their planning, whether they’re approaching retirement or are already retired are:

• Vision – a clear picture of what they really want their lives to be in the next 30-40 years.
• Healthcare needs –both current and potential.
• Lifestyle – travel, sports and activities interests – hobbies, associations and groups, and on the ground charitable involvement.
• Social connections – friends, family, maybe former co-workers.
• Accommodation needs – current housing, downsizing, and extended care options.
• Legacy – what you want to leave behind when you’re gone.

Each component will play a major role in the fulfillment and satisfaction you’ll get from your retired years. But they each require time and energy to get real clear about what you want them to look like. Everyone’s situation is different and we all need to be realistic about our personal situations - starting with a detailed picture rather than a vague sense of what the future might hold.

Will you work a few more years to supplement your travel habits while you’re still healthy? Will you move to a country that you’ve always dreamed of – maybe one with a lower cost of living that will stretch out your capital? Do you have elder care responsibilities or dependent children to consider? How active are you? Where do you friends live? Is your family close by or will you need to travel? Are there physical constraints?

There are many things to consider when planning for your future, money may set the parameters around what you can do, but a good life is about more than dollars and cents, it’s about not letting things slip by you because you didn’t take the time to think about them.

If you have questions or comments connect with us at http://www.yourlifeyourplan.ca. Next week I’ll talk about creating a vision for your retirement.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.