Retirement can come around sooner than you think, so it makes sense to start making plans. By doing so, you can ensure that you everything in place to be able to live the lifestyle you choose when you retire. Of course, there are so many things to take into account that it can be tricky to ensure you’ve got everything covered. With this in mind, take a look at these three important factors you’ll want to consider when you’re planning your retirement:
1. Finances
Your financial situation is going to have a major impact on your lifestyle throughout your retirement. When you don’t have a regular income from employment, you may be reliant on savings, payouts from retirement plans and pensions. This means that being financially-savvy during your working life is vital if you want to be financially comfortable when you retire.
To calculate how much you’ll need to live on, spend some time thinking about how you envisage your retirement. Then, you can estimate the costs involved and determine what level of retirement income or savings you’ll need. Compare this to your current savings or your estimated income from plans and pensions and adjust your contributions, if it’s necessary to do so.
2. Social Interactions
As you get older, it can be harder to connect with the people around you. If your mobility declines in later life, for example, you might find it harder to travel, which could impact your ability to visit family members and friends.
Sadly, loneliness and isolation are major issues for older people, so it’s something worth thinking about in advance. Deciding whether to move closer to family, to move into retirement accommodation with established social communities or to remain in your current home is a big decision, so take all the time you need to decide what’s right for you. Additionally, you may find it helpful to discuss the options with family and friends or visit retirement communities to see what’s on offer.
3. Healthcare
We rely on healthcare services throughout our lives, but it’s not unusual to experience more frequent periods of ill health as you get older. Thinking about the type of care you would like to receive means you’ll have a clear idea of how any instance of poor health will be dealt with in the future.
You may also want to consider who might make decisions on your behalf if you’re unable to advocate for yourself. Some people choose to appoint a power of attorney for personal care or to draft a healthcare directive, so that a family member or close friend has the authority to make decisions on their behalf, which could be an effective way for you to plan for future medical needs.
Living Your Dream Retirement
If you want to be able to live your dream lifestyle during retirement, it’s important to start making plans as early as you can. By making regular contributions to a pension from a young age, for example, you could increase your financial resources and give yourself the freedom and flexibility to do whatever you choose when you retire.