When it comes to retiring, there’s a lot to think about and for many the whole process can become a little overwhelming.
Have I got enough money? Will I be bored? Can I sustain the lifestyle I want? These are all important questions and all things you should have answered by the time you clock out on your last day of work.
While there may never be a ‘perfect time’ to retire, there are a few things you should definitely have in place before you think about quitting your job for good.
According to the financial experts at The Motley Fool, finding the perfect time to retire comes down to three key aspects:
1. Only retire when you have a clear plan in place for how you’re going to spend your time and feel fulfilled.
2. Only retire when you’ve practiced living on your retirement.
3. Once you’ve got the above figured out, retire ASAP!
Planning your retirement lifestyle
Before quitting their job the thing that plays most on the minds of many is money and how they they’re going to go week to week without getting their weekly paycheck. When it comes down to it though, the thing that people miss the most about their job is usually the social aspect and having something to stimulate their mind. Work isn’t just about getting a lump sum in your bank account every week (although it can feel like that sometimes) it also provides us with much-need socialisation and a sense of community.
If you’re quitting your job, you need to find other ways to fill that social void and give you a sense of purpose. Experts say you should have at least three core activities to satisfy these needs – and they can be anything you like. Grandparenting, volunteering, gardening, craft, community work, travel… the list goes on. After all retiring is about getting to do all the things you never had time for before, so make sure you get the ball rolling and dedicate yourself to activities that will keep you as active and engaged as you like.
Practice makes perfect
There’s a big difference between planning your retirement budget and actually living on it. Living day by day on a reduced income comes as a rude awakening to those who didn’t understand the kinds of adjustments they would need to make. Plan out what your finances are going to look like every week after you’ve stopped working and try living on that budget for a couple of months. You can use this time to make any tweaks to your plan and how you use your money.
Talk to a financial advisor to make sure you’ve got your money really working hard for you in all the right places, too. They can also tell you when and how you should draw on your super, apply for the pension (if eligible) and build on the capital you already have.
Say ‘adios’ ASAP
Once you’ve got all your plans in place, retire as soon as you can! Studies show that retirees are happier than they’ve ever been so jumped on board and start enjoying this phase in your life when the time is right for you. Take comfort in the fact that you’ve planned for this moment as best you can start enjoying the things that matter most to you.
Are you planning for your retirement? Have you already retired?