Are you Planning for Retirement in 2024?

Written on the 22 February 2024 by Parkside InvestorPlus

I’ve written about planning for your retirement before, everything from road testing your retirement,planning for rising costs of living in retirementand even the benefits of delaying your retirement.

When people start to think about retirement, the thoughts naturally lead to, do I have enough in my super-tank to retire, how much will I need to live on (in retirement) and how much can I/we leave behind for our kids (inheritance).

However, how many Australians really think about their post working phase of their lives?

If the idea of retirement is all about escaping a job, then I fear you are in for a disappointment.

Thoughts and Images of travel, golf, gardening and sailing typically form as the retirement dream, but is this enough to generate satisfaction, or a fulfilling post-work life?

 Instead, there are other, equally important factors to consider when planning for retirement.

Maintaining your identity in retirement

We spend countless hours of our lives at work.

Over the years, this can become a significant part of our identity.

We lead conversations with, “I am a [insert you job title].”

So, if this turns into, “I was…” when we retire, who do we become?

We naturally build identity around what we do and may need to be more intentional about who we are outside of careers and family.

The important step here is that we all need to build/develop our post-working phase identities, other than ‘I was…’, or else we will face loss of self-esteem and worth – no one wants to feel marginalised at any point in their lives.

This is not a trivial point, many retirees venture into retirement with the notion of time on their hands to do all the things they could not do when they were working, however, they do not consider their loss of status and maybe even relevance which they had when working.

Maintaining Connections in retirement

To be blunt, when you are working, your primary social network comes from you career: co-workers, clients and even friends in related industries.

However, as we age, it’s even more important to be intentional about developing and nurturing relationships and building connections with others (outside of our working sphere).

If you want a fulfilling retirement, then you must work on your mental and physical wellbeing.

And here’s the key – a store of money in your superannuation account will never be a substitute for positive and encouraging social connections.

Money alone will never promote and sustain health, longevity, and esteem.

Relocating in retirement

While the family home and where you live may be your castle and full of fond memories, ideally, this may not be practical any longer.

For some the thought of downsizing is a sign of bliss, for others it could be traumatic and a loss of presence.

Add to that if the downsizing option involves relocating to another part of town or state.

In retirement, no options should be off the table, including relocation, if it makes sense personal and financial sense.

If relocation is part of the plan, then try test driving your new chosen location with an objective view of possibly permanently living there.

Explore the amenities, medical support facilities, entertainment, and the like.

And of course, many retirees choose to simply become nomads – i.e. travel the land in a caravan/RV – which is also fine, however, you need to convince yourself this is the right move for you.

Aging and care

Proper and prudent aged care financial planning will ease the burden on both you and your family when the need arises.

Additionally, aged care can help you with:

• Staying connected with your community
• Maintaining some level of your independence
• Supporting your health, safety, and overall wellbeing

So, whether you chose to stay in your own home or move into an aged care facility or even in the event of short-term care such as after hospital and respite care, planning for the inevitable before you transition into retirement will make it all the less stressful for all.

The key takeaway here is to start planning early for both retirement and aged care, as difficult and unwanted as it may seem.

Don’t plan your retirement in isolation

At Parkside InvestorPlus, we help our clients transition into retirement from a financial and a positive mental perspective. And we have an Aged Care specialist who can provide advice and guide you.

Contact us today to see how we can help this life important journey pleasant and joyful.