What determines a successful retirement will depend on the individual. Spending time with family, traveling, or just relaxing are all markers of a successful retirement, although the importance of each will vary depending on the individual.
Retirement is comprised of many moving parts. Ensuring your retirement accounts have enough in them to support your retirement years is the prime concern for many, although don’t neglect planning for what your day-to-day will look like. Discovering your sense of purpose when planning for retirement is imperative in finding fulfillment upon retirement.
Common Goals for Retirement
To reiterate: a successful retirement will look different for everyone. However, there are common parameters that most retirees will use to measure how successful life after retirement is.
Being able to pay for basic necessities in retirement is likely the most important goal for retirees, since running out of money is perhaps the biggest fear for retirees, regardless of their income. Having an emergency fund or an ample amount in savings is also a common goal; being able to cover an emergency expense is a goal that is ubiquitous among individuals regardless of their income level or stage in life. No one wants to be caught unprepared when something unexpected comes up.
There are other common goals that are not finance-related that many retirees have. How you spend your free time (and you should have a lot more of it) in retirement will be a substantial marker for how you measure your happiness and fulfillment. Your hobbies and activities, which will vary in cost, time, and attributes, will likely be something you put a fair amount of time and energy into.
They should also be factored into your expenses when creating your financial plan and budget for retirement. If you plan on traveling in retirement, especially internationally, you should dedicate a respectable amount of planning towards this.
Although legacy may not be the most pressing concern for retirees, estate planning and having a plan for how you will transfer your wealth and assets once you pass should also be something to pay mind to. Contact one of the advisors at TFA to see what a comprehensive financial and estate plan can do for your peace of mind.
Finding Your Purpose in Retirement
Finding your purpose in retirement can be as easy or as hard as you make it. Ultimately, your purpose is entirely up to you, and this freedom of choice can be daunting for some. For many individuals, this will be the first time in perhaps decades that their schedules and day-to-day activities are not organized and structured according to a plan. This can be an exciting path to something new, but it’s also undeniably intimidating for some.
How you spend your time in retirement and what your purpose is will always be something that only you can know and discover for yourself. The best way to go about discovering what that may be is by dedicating time to finding what it is, similar to how you dedicate time towards planning for the budgeting and wealth management aspect of retirement. Talk with your family and loved ones to see how spending time with them will factor into your time, and ask yourself what things you may want to do in your golden years.
Making the Most out of Your Retirement
Making the most out of your retirement begins long before your last day at work. Retirement planning can (and should be) started as early as possible. To set yourself up for a successful retirement, you need to begin planning as early and thoroughly as possible, outlining all contingencies and getting a solid idea of what your day-to-day will look like.
In being proactive, you can begin to develop a budget, which will allow you to set aside money for both savings and investments, which may be a big concern for you in retirement. Understanding your retirement savings and income is crucial as well, from Social Security to your different retirement accounts. Knowing where your income comes from will help you to develop the appropriate tax strategies necessary in this next stage of your life.
After planning extensively and developing the appropriate strategies, you should be sure to know what you want to do once you do retire. Whether it’s traveling, spending time with family, relaxing, or a mix of everything, have a plan for how you want to spend your time in your golden years so that you’re not confused and feeling lost with no purpose.
Your purpose in retirement is ultimately up to you, as is how you spend your time. Proactively planning is a great way to set yourself up for success and meet your goals. However, this can be a difficult task to manage for some, while others may not know where to begin. Regardless of where you are in the process, the advisors at TFA can offer a helping hand and provide clarity for any questions and concerns that you may have. Contact us today.