Seeing as my milestone birthday is next week, I have begun thinking about the next phase of my life.
Most people view retirement as a time to shift gears and enjoy a slower pace of life. Retirement is often seen as a time when individuals can kick back, worry less and take it easy after many years in the working world. This rosy picture is justified, but it can quickly change if the necessary preparations are not made.
Those who are nearing retirement have many things to consider. This is why retirement planning should be taken seriously once people hit their 20s and 30s.
Some of the considerations to make when planning for security in retirement include:
Lifestyle
Individuals who are nearing their retirement age ought to consider the type of lifestyle they wish to have once they leave their jobs behind. Their lifestyle choices will directly influence the amount of funds they need to have saved up prior to retiring.
There are those who wish to continue working either full time or part time after retiring, while others may wish to travel and see the world. These are personal choices, and those making them need to be aware of how they can remain productive in their later years.
Finances
Adequate financial preparation can make a world of difference to retirees. The amount of money required by each person largely depends on his or her personal needs. However, potential retirees ought to be clear on how they will fund their lifestyles. There are a range of options available, from social security funds, pension schemes and government benefits.
Additionally, individuals need to have updated wills in place stipulating how their estates will be shared amongst their dependents. It is also important to give power of attorney to a trusted individual to save families from legal and administrative battles.
Where to go
Before retiring, individuals should decide where they want to spend their retirement years. Some may choose to remain in their homes, while others may decide to move closer to their families. Others may opt to move to an exclusive senior retirement community.
Retirement communities have come a long way in the past few years. Nowadays, they are first-class establishments offering a rich menu of activities and events for retirees to enjoy. Those who relocate to these communities benefit from friendship and companionship with people from their own age group. Such communities are usually close-knit with individuals looking out for each other.
Health care considerations
As part of planning for retirement, people need to consider increased health care expenses. Senior citizens are often vulnerable to a number of health conditions and ailments that could wreak havoc with their retirement plans and finances. For most individuals, retirement means leaving behind employer-provided health care coverage, and such people need to know where to turn.
This calls for adequate research and planning. It is vital for potential retirees to understand all the health insurance options and funding sources they can take advantage of in the event of a health emergency.
Being informed and proactive about health care expenses and options prior to retirement allows individuals to be prepared for any eventuality.