Retirement planning should be comprehensive.
Retirement planning involves more than your dream vacation.
Perhaps this comes as a shock for you.
Or perhaps you have busied yourself for years mulling over your retirement anxieties.
Either way, you will need to be intentional in your planning.
According to a recent nj.com article titled “Retirement plans that might not pan-out,” you need to be realistic as you prepare and plan for retirement.
How do you do this?
Do not assume you can work forever.
Your current situation may not be your future situation.
Aging means you will lose physical and mental functioning.
It just happens.
You may no longer be able to perform your current job.
Work may be impossible or you may be let go.
Consequently, you should save and prepare financially for the possibility of being unable to work either full-time or part-time.
What should you do?
Work with an experienced financial planner to discuss how you can best make and reach reasonable retirement goals.
Do not assume you will die early.
People in America are living longer.
You do not want to outlive your funds, right?
Be sure you plan your budget and your savings to accommodate the possible likelihood of living to age 90 or 95.
You will need account for health care costs as well.
Consider downsizing.
At one point you may have needed a larger home.
You had children running around.
They had friends cycling through the home like you had revolving doors.
Now it is just you and your spouse.
All that remains is the laughter echoing in the hallways.
Your home is larger and can be costly in terms of upkeep and expenses.
Downsizing or “right-sizing” may be a wise option for you.
In addition to cost savings, you may find a new home easier to maintain and more suitable for your aging body.
This option is not always best as there are other costs, to include realtor fees, moving costs, and paying off debts.
Either way, you should weigh the costs and benefits.
Taking the time to realistically evaluate your situation in light of your goals will help you plan more successfully for retirement.
Reference: nj.com (June 14, 2019) “Retirement plans that might not pan-out”
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