The Retirement Rescue Plan
If you do not feel prepared for retirement, you are not alone. An Australian National University survey found that 56% of respondents were concerned about finishing work.
Retirement preparedness is not just about having enough money to leave work, it also involves emotional challenges, such as your sense of identity and what your future might look like.
If thinking about retirement leaves you feeling more insecure than excited, perhaps your retirement strategy needs rescuing. These simple steps will help you get started.
1. Create a Financial Action Plan
Assess where you are financially.
If you have not already, set up a household budget. The government offers a free tool to help.
Consider ways to boost your super.
Downsizing may be an option, with government incentive schemes that can help increase your super right when you need it most.
Practice living on a reduced income.
Try living on what you expect to receive in retirement and track your progress. Consider working part-time to help you adapt to your new lifestyle.
Seek professional advice.
A financial planner can help you set retirement goals, develop a savings strategy, and guide you through the transition. They can assist with structuring your retirement investment, tax, and estate plans, ensuring your strategy stays aligned as your needs change.
The earlier you begin planning, the better. Your planner can also help you gradually reduce work hours and regularly review your lifestyle goals to match your financial situation.
2. Create an Emotional Action Plan
Acknowledge the emotional side of retirement.
It is natural to wonder who you are when you are no longer defined by your job title. Stepping away from work can result in confusion or feelings of loss, and many retirees experience boredom or social isolation.
Stay connected and active.
Cultivate a rewarding lifestyle before finishing work. Explore community centres or libraries for special interest groups, hobby or craft classes, or activities you can facilitate.
Stay engaged through swimming or walking groups, book clubs, volunteering, or lifelong learning opportunities such as the University of the Third Age (U3A) or Men’s Sheds.
If you are feeling overwhelmed, organisations such as Beyond Blue or Lifeline can offer support and advice.
Find new inspiration.
Lifestyle magazines, social media pages, and online communities for retirees can spark ideas. Try creating a free Meetup account to find local groups and events, or start your own.
3. Plan for a Fulfilling Transition
By taking small, simple steps now, you will feel more confident and prepared when retirement arrives. Once you have built financial security and an active lifestyle, you may find yourself wondering how you ever had time for work.
Retirement is a new beginning. You just need to decide what it will look like for you. Consider not only what you will need financially, but also emotionally and socially, so you can embark on the next chapter of your life with optimism and confidence.
You have earned it.
