Insights & News

February 2016

Five Things to Consider Before Retirement

You have been looking forward to this day for years but now that it’s finally drawing near, you’re feeling apprehensive. There are loose ends and preparing for retirement is feeling more like a burden than an approaching vacation.

Retirement can be exciting, but it can also be stressful and sometimes melancholic. Figuring out if it’s the right time to retire can be tricky, but the best way to ensure that retirement will go smoothly is to have well-laid plans. Planning out your budget, your goals, your spouse’s goals, and factoring in family members as well can ensure that the retirement process will be smooth and enjoyable.


1. What will be your spending level in retirement? 

Not sure whether or not you can retire comfortably? First, determine how much you need to spend to live an enjoyable life, meaning you are able to pay for the essentials as well as the extra, fun things you want to do. Track your spending, add up your current expenses and incorporate future expenses as well. 

Concerning your portfolio, you may need to tweak your allocation.  You may not not want to take on more risk than you need to fund your expenses.  You have spent your working life accumulating your nest egg.  Now, you want to preserve it to last a retirement of 30-40 years.   

Factor in Social Security. What is the best time to start receiving your benefit and spousal benefits?

What happens if you are no longer able to take care of yourself? Should you calculate the possibility of assisted living into a future budget?

Still have questions about whether you’re on the right track for retirement? Contact us.


2. What are your goals?

Whether you’re planning on traveling, spending more time with family, working on hobbies, volunteering in the community or transitioning into part-time work, setting some goals is important for your budget and your post-retirement state of mind.


3. What are your spouse’s goals?

Do you and your spouse see eye-to-eye when it comes to retirement plans? If you’re not communicating with your spouse about exactly what your day-to-day might look like after retirement, don’t assume that you have the same expectations. You might be ready to sail around the world but your spouse may be more interested in spending lots of time with the grandchildren. Don’t wait – talk about your plans now to avoid future conflict. Read more on Forbes.


4. Will retirement have a positive or negative effect on your mental and physical health?

Mental and physical health should be part of your retirement plans. For some, retirement can mean disconnecting from their peers and social network. If that social aspect isn’t fulfilled, it could be detrimental. Staying physically fit is also an important factor and should be part of the planning process.


5. Is it the right time?

You may want to retire ASAP, but is everything in order? Does your budget allow for everything you want to do in the coming years? Are your peers and friends also retiring? If not, will that affect your decision? Timing is everything and having the right council that has knowledge of the ins and outs of retirement can be invaluable. Don’t make the plunge unless you’re sure that the timing is right for you.

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