Retirement planning 1

The majority of people have not saved enough for retirement that is a fact and many are thinking that they may have to keep working well into their 70’s, if they stay healthy. There are ways to prepare for retirement even without adequate savings:

If you are emotionally or psychologically ready for retirement, but your finances are not quite there, you might explore taking an extended (3-12 month) vacation from work to get to see what retirement is like. Some of you may have already been faced with a long-term break because of COVID-19.

In normal circumstances, many people nearing retirement age find that an extended break from work is enough to recharge and re-energize. COVID has changed that and the break from work may be unwanted, but it will give you an idea of what life might be like when you retire.

Quitting your job with the hopes of finding a similar job upon your return is another option. However, many people who take a retirement gap year or are forced out of work by this Pandemic discover they can create an encore career and new passions during their time away from their normal career.

Having no work can force us to focus on the things that are enormously important to us. Living frugally is never going to be easy street and it will take some adjustments.

Most financial advisors assume that we want to maintain our spending habits when we retire. While this is true for some of us, many people redefine themselves in retirement and can dramatically reduce spending – one of the best ways to retire securely.

 Retirement is an excellent time to take stock of what you have and what you want. If you know what is most important to you, you can set goals and figure out a way to achieve your highest priority. Write down your retirement priorities and refer to them daily. It may even be helpful to write a list every day about what you want to accomplish and why.