The worse case scenario in any retirement is that you run out of money. Imagine reaching the grand age of eighty and realising you probably have another ten year or so to live, but your pension pot has been spent, you’ve released the equity from your home and spent this as well. What are you going to do?
Getting the Right Retirement Account
It all starts with the retirement planning, but while in my opinion there is only one way to you’re your money from scratch, there are many types of retirement accounts that you need to research into with the help of a financial adviser, before deciding on the best one for your circumstances.
If you can, talk to an advisor, they will go through everything with you and make doubly sure that you are doing the right thing for your circumstances.
Finding the Right Balance
Often the problem with people in their 80’s, isn’t that they have no money, it’s that they worried about running out of money, they’ve not completed their bucket list and now don’t have the health to get on and do it.
The most important thing in retirement is to plan, but also find the right balance between spending an saving. There’s no point in having hundreds of thousands in your bank account when you die, and nothing ticket off your bucket list.
You Don’t Constantly Worry About Money
People tend to think that once they retire, they need to be careful about how much they spend. This is only partly true. Yes, you need to have a budget, but it’s becoming increasingly clear that you will need less and less money as you grow older and therefore less active.
At the beginning of your retirement, what some people call the Golden Years, you can probably afford to splash on trips to those places you never had time to visit. Some people set up their small business that showcases a once neglected hobby, others even return to education.
Once you start to slow down, nowadays from 80 onwards, and spend more time indoors and with your family, you can probably live comfortably on a relatively small budget.
An Inflexible Budget and Strategy
Once you hit retirement you’ve lived more than long enough to understand that life doesn’t always go to plan. Even if you have a carefully thought out strategy, discussed and tinkered with at length, future circumstances will more than likely force you to adjust it at some point.
There is not much more you can do about that except be prepared for it, regularly reviewing your budget and strategy. It’s better to make small adjustments as you go along rather than a big dramatic change.
Adapting To Changes
We all tend to prefer to stick to the things we know. It’s understandable, particularly in old age. After all our old ways have served us well in the past. The problem occurs when people have ignored modern methods to the point that they have to suddenly rely on others to do the most simple of tasks.
On the flip side, keeping up to date with technology and modern ideas can give you whole new lease of life. If for example, you have taken the time to learn about the Internet, you can do things such as online courses, online jobs and even blogging. If you have a hobby that has turned into a paid gig, you can market yourself on social media.
Replacing Your Old Job
Whether it’s a hobby, education, volunteer work or even a part-time job, it’s essential that you replace your career with something that you enjoy and keeps your brain. A few years ago, there was a study done in the US that compared people who retired at 65, to those that retired at 55.
On average, those who retired at 65, lived another 18 on average before passing away, while those who retired age 55, typically lived another 25 years on average. The results were put down to the fact that those who worked on until they were 65 years old, put additional stress on their bodies and mind that cause a variety of health problems.
Remember, just because you’re retiring age 55 from your day-to-day job doesn’t mean they have totally stopped working. It simply means they were less stressed in their part-time jobs that still kept them using their brain and being active, but the stress did not cause the variety of health problems that a fulltime day job would.