The choices we make in the run-up to our retirement can impact on many things and force to answer many questions, including:
- Where will we live in our later years?
- What sort of lifestyle do we want to enjoy in retirement?
- Will our pension be able to cover our monthly expenses?
- Do we need, or want, to find another source of income?
- How will we keep our days productive?
Considering all these and making financial planning decisions based on the answers can help you ensure your best years are ahead.
Keeping a healthy mental frame
Keeping active is healthy and fulfilling, particularly in our later years. There are many ways in which we can maintain a healthy and productive life long after retirement.
The main focus is usually geared toward mental health. Watching gameshows like the Price is Right or trying a game of Plinko, inspired by the show, could prove interesting and engaging.
Engaging in social clubs keeps you mobile and fills the long quiet hours in between with constructive activities. Find new interests and keep the mind challenged and body active.
Taking trips specially designed for active seniors is a great opportunity for broadening your horizons as well as developing new interests. Cruise ships, for example, provide a vast selection of activities while you sail around the world to numerous destinations. Free your adventurous self by exploring the various options as your time is no longer monopolised by essential duties.
Can your finances support you in your later life?
A good pension plan that you’ve been building for years is a valuable asset in later life as it provides freedom and comfort so you can seek tranquillity in your life. There are many investment options available. With the world considering cryptocurrencies as worthwhile investments and stablecoins becoming a more appealing option, it’s never too late to diversify your current portfolio further.
Often our only source of income is from monthly pension payments, which at times may not be sufficient to supplement living expenses. Should you need to dip into your pension pot and invest, ensure this investment can generate the income you need without jeopardising too much of your capital.
Investigating an investment opportunity is vital in later years to safeguard capital that is meant to last you to the end. If you’re unsure about specific investment opportunities, speak to a financial adviser to ensure you avoid falling victim to scams and investment fraud.
Creating an extra source of income
For some, being creative and entrepreneurial does not end upon retirement. There have been many success stories of people starting successful careers and businesses in later life.
Many have capitalised on advances in e-commerce to sell vintage possessions on eBay, which later led to them operating drop shipping stores. Others have finally gotten around to writing that book and publishing it online.
A passive income may not always be about earning more, but it could be a fantastic way to engage with fellow peers, be creative and feel productive.
Preparing for your retirement
A Chinese proverb says: “The best time to plant a tree was twenty years ago. The second-best time is now.”
Our retirement funds a meant to assist us to live the best, and most tranquil, lives possible in our later years. Unfortunately, this takes planning and time - and often it will never get to be enough.