A happy retirement is within your reach

July 2, 2014 by Agency Reporter 0 Comments

   

 

Managing your retirement income

Whether your retirement is five years away or twenty-five years away, there is no doubt that the whole notion of “retirement” can be tricky. To some people, the word represents freedom; freedom to live their days as they please and do what they want to do without a boss or a bunch of co-workers looking over their shoulder. But to others, the word retirement may invoke fear and the question, “what’s next?” or “what will my purpose be?” Retirement should be thought of with great anticipation and excitement. You have worked hard, and now it’s time to enjoy the fruits of your labour.

The key to planning for a happy retirement is not only about how much money you have in the bank. While there are financial bare minimums needed to live and retire in America, the key to retiring happily requires a balance of both smart financial choices and personal behaviours. There will be certain life issues that are beyond our control such as health scares, changes in life circumstances and the economy. However, the key is to control what you can and to start early. Retirement comes at all ages these days, so whether you are in your 30’s, 40’s, 50’s or 60’s, you can start adopting certain behaviours and action plans now.

So exactly what are some specific actions you can take towards being a happy retiree? Try to follow these six best practices, and you will be on your way to creating the kind of life that you desire and deserve.

Find at least three core pursuits

Core pursuits are like hobbies on steroids. They are something that you are absolutely passionate about and something fulfills you. Core pursuits can range from volunteerism to travel and sports. They should help define you and bring into focus the things that matter most. Core pursuits are highly social, active, and generally involve other people. They are essential for enjoyment in life and will keep our minds- and bodies- happy and young.

Have a well-defined understanding of your purpose in life

Retirees that have a strong sense of direction and meaning in their life are generally much happier. These retirees do not believe that their life is now without purpose, just the contrary. They have a clear path and direction in which they want their lives to take.

Pay off your mortgage, or know that your mortgage payoff is in sight

The happiest retirees typically have no mortgage payments left, or have a plan to eliminate their debt inside of 5 years. There are many benefits to paying off your mortgage. One is that you are no longer paying 4 per cent or 5 per cent interest to the bank (and in some years possibly more). Paying off your mortgage will give you the budgetary freedom to spend your money in other ways that might be more enjoyable and give you purpose and happiness.   You will sleep more soundly at night knowing that you have a major financial burden behind you!

Develop multiple streams of income

By diversifying streams of income, retirees generally feel more financially secure. Think of it like creating as many tributaries as possible to come together in one new, predictable larger stream. Examples of different sources of include social security, pension income, income from investments, income from rental properties, government benefits and part-time work.

Spend at least five hours per year planning

Planning for retirement takes time and actionable steps. Retirement money is not just going to fall into your lap and starting to save at a young age is pertinent to creating the financially comfortable future that you would like. The first step is to think forward and develop concrete ideas about what you are going to want and need your retirement money for; once that is determined you will be in the position to create a roadmap for savings success. Remember that each individual or couple will have a varying set of circumstances and expectations; hence every person’s formula will be unique. The key is figure out what you want in retirement, and how your money will fuel the life you want to live.

Travel

The happiest retirees tend to be those who travel and experience new adventures. Trips and vacations do not necessarily need to be extravagant, but there is a sense of freedom and excitement that most retirees feel when they travel. Nowadays there are a plethora of opportunities to travel on a budget with various online deals and group deals. Such tools make vacation planning less complicated and more fun. Group travel is greatly advised as it lends itself to being social and meeting new people.

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