How can I prepare for retirement?
Before we ever look at when you can retire, we need to first examine how to prepare for your retirement. Many people focus on ‘their number’, i.e. how much they need to have in their pension pot before they can retire. This is obviously an important factor, but another important but less spoken about consideration is if you are emotionally ready for retirement. Ask yourself the question “Am I ready to retire?”.
This is a massive transition period and one which many people don’t deal with very well as they are faced with a major upheaval to their daily routine. Individuals are faced with a lot of spare time which they aren’t used to and can find themselves without purpose as they stare at the walls in their home. There are only so many times you can paint a room and weed the garden!
There is also a change in an individual’s social networks as they no longer have the relationships they forged in the workplace. Another issue that people are faced with is what role they now play in society. Many people define themselves by their career and can feel a little lost when they no longer have this associated with them leading to issues with their identity and purpose. Failure to recognise and plan for these lifestyle changes can lead to difficulties during this transitional period.
There is a lot of research that suggests that a planned retirement is a more enjoyable and fulfilled one and that those that do put plans in place live longer happier lives.
Plans should be made in conjunction with your family, friends, and employer. Individuals should put in place some structures around this new spare time by pursuing interests and hobbies as this will keep you mentally engaged and will also allow you to substitute the human interaction you are accustomed to in the workplace. It can also help reinforce feelings of self-worth. Looking after your health should also be a priority ensuring regular exercise paired with maintaining a healthy and balanced diet.
The Retirement Council of Ireland can help people prepare and transition well to the next stage of living. They provide support, information, and guidance to individuals approaching retirement. They offer practical courses and seminars which talk through the financial and lifestyle changes retirement brings to prepare people before the time ahead.
This coupled with a good working relationship with your financial advisor who can map out the different scenarios for you by use of cashflow modeling and reviewing your plan, helping you to manage and achieve your expectations which can make the transition to your ‘second life’ a lot easier.
For more information about retirement planning or financial planning in general, you can book a complimentary chat here or call us on 025-30588.