When you envision your retirement, what do you see yourself doing? Spending your days watching birds while you do crafts? Or sipping wine on the beach in a place where you’ll never experience snow again?
After working hard for decades, your retirement should be spent doing exactly as you like. And for that to be achievable, you’ll need to start planning now for the type of life you’re aiming to lead in your golden years. Here’s how to start laying the groundwork for your post-work era while you’re still working.
1. Envision what would be the ideal retirement plan for you, on a granular level.
If you’re like most people, you’ve probably spent a fair bit of time thinking about how you’d like to spend your retirement. Maybe you’ve been dreaming about retiring to your cottage, where you’ve spent some of the happiest and most relaxing times you can remember. Or you’re looking forward to moving away and starting anew in a cushy retirement community.
This is all well and good, but creating a retirement vision that will actually be viable requires thinking about the finer details.
As such, take all possible issues into consideration as far as planning is concerned, such as whether you’d like to see friends or grandchildren regularly, or if health conditions require you to remain within a certain distance of a hospital. Include details like these in your plans so you aren’t stumped by surprises when you’re making your dreams a reality.
2. Determine what’s attainable, vs. what’s unrealistic.
It’s important to keep your goals realistic as you’re planning your retirement. For example, you may be physically able and energetic now, but that doesn’t mean you’ll be in the same shape when it’s time for you to retire. This doesn’t mean that you’ll “let yourself go” so much as unexpected health challenges or other personal changes might change your capability levels.
As a result, planning a retirement that revolves around ziplining or salsa dancing competitions may be lovely in theory, but unrealistic in practice. I’ve seen how my partner has had to adjust her lifestyle and future plans to accommodate the changes she experienced after her stroke, and relatives of mine have had to buy bungalows or condos when they were no longer able to navigate stairs safely.
3. Establish the budget you have to work with.
Keep in mind that the average person will need 70% of the income they earned during their working years to maintain a similar standard of living once they’re retired. If you have a career-provided or government pension plan, find out how much that’s going to provide annually, as that will give you a framework to work within. Alternatively, if you don’t have much of a pension to rely on, you can determine how much you’ll need to earn and set aside to live comfortably in your golden years.
The general rule of thumb, if you’re able to, is to save 10% to 15% of your gross (pre-tax) income every month to put towards retirement, if you start in your 20s or 30s. If you’re older than that, it’s better to save 20% to 25%. Also take into account things like inheritance you may receive (such as a family home that’s already paid for), and big-ticket items you may be able to sell to bolster your retirement fund.
4. Find the most cost-effective solutions for the goals you’re dreaming of.
Many people daydream about retiring somewhere beautiful, but some places are much more expensive than others. Before you set your heart on a specific location, do some research into comparable alternatives that offer a similar lifestyle, climate, or culture at a lower cost. You may be surprised to find a hidden gem that ticks all the same boxes for considerably less.
The same goes for retirement properties, or small homes like cottages that some people dream of retiring to. Costs can vary enormously depending on the region, so it’s worth casting a wide net before committing. A retirement community that costs a small fortune in one city may have a comparable equivalent in a nearby area or a different region altogether, for a fraction of the price.
5. If you want to retire somewhere you’ve never lived before, spend at least three months there first, across different seasons.
It’s wonderful to daydream about retiring somewhere gorgeous, but some places are a bit more challenging than they appear on the outside. For example, that tropical paradise may be a mosquito-filled nightmare in monsoon season, and that quaint European village may get so cold in wintertime that it chills one to the marrow.
Aim to spend at least three months in the location where you’re aiming to retire: one month in summer, one month in winter, and a couple of weeks each in spring and autumn. That way, you have a realistic experience in all seasons and can determine whether this is the right place for you, or if you need to keep searching.
Additionally, keep in mind that you can always travel during your retirement as well! For example, if you have the means, you can settle down in that quaint Euro village and escape somewhere sunny in the dead of winter.
6. Create a work-back plan.
Once you have all the goals and details planned out, you can create a work-back plan to use as a map for the retirement destination you’re dreaming of. Figure out all the loose ends you’ll need to tie up before you retire, and from there, you can tackle each one depending on its priority and the length of time it’ll take them to sort out.
For example, you may need to go through boxes of stuff in storage before you put your house up for sale, or establish care plans for family members in your absence. Remember to delegate tasks to others so you aren’t overwhelmed with responsibilities.
7. Protect and nurture your health and fitness as much as possible.
It would be terrible to plan out the retirement of your dreams for several years, only to not be able to enjoy it properly due to poor health. Of course, many health issues are out of our control (including potential injuries that happen through no fault of our own), but others may be either prevented or reduced significantly by caring for ourselves as best we can.
Consider working with your healthcare provider to determine which nutrients you’re low in, and map out a diet and exercise regimen that suits your individual needs the best. For instance, some people thrive on a Mediterranean diet and lots of aerobic activity, while others do better with a high-protein, high-fat diet and things like weight training and yoga.
Adhere to this protocol as best you can, making adjustments as needed as you age, and you’ll have a much greater chance of a vibrant, healthy, and energetic retirement you’ll adore.
8. Stock up on things you love.
This one may sound silly or weird, but it’s something I’ve heard from friends and family members alike. If there are things you truly love, whether it’s snacks that delight you or shoes that fit like a second skin, stock up on them. Most of us miss things that we enjoyed in the past that ended up getting discontinued. Some of us wax nostalgic over things like Snapple Rain or original Irish Spring soap, which we would have bought in bulk if we’d known they would disappear.
The items you love may not exist in the future, and if having things that make you happy will make your retirement everything you ever dreamed of, then make sure you have several of them tucked into storage. Sometimes, a challenging day can be made significantly brighter with a snack or scent that evokes happy memories.
Final thoughts…
If you find yourself struggling to figure out whether you’ll have the resources you’ll need to make your retirement dreams a reality, it’s a good idea to sit down with a financial advisor to map out where you’re aiming to go and how to get there. Sometimes, a pair of expert eyes can be invaluable for finding solutions that you didn’t even know existed.
You’ve worked hard for a really long time, and your retirement is going to be spectacular. Let’s make sure that you can enjoy every calm, unhurried, blissful moment of it.
