Examine plans for your retirement!

I have written about my failure to adjust to retirement. I show on my blog page that I officially retired in 2006 but I actually retired in 2014. One of the main reasons I took so long to adjust is that I did not have a plan before I retired. My wife was ill, so she retired, and, on a whim, I retired at the same time. That was a mistake. 

After years of semi-retirement and years of full retirement, my suggestion or advice would be to sit down and do some planning. The first step is to understand that there are stages of retirement. They have been labeled by Michael Stein ins his book as the Go-Go years, the Slow-Go years, and the No-Go years and by others as the honeymoon stage, the comfort stage, and the slow-down stage. No matter what you call it, most people go through these stages as they get older.

The first stage is when you tend to be physically and mentally capable of living a fairly active lifestyle. In fact, the phase may not be that much different than pre-retirement except that there may be more time to do things like travel and hobbies.

For some, this stage will include work. It may be part-time work, or it may mean self-employment. Whatever the case, active retirement is really living the stereotypical retirement dream. Many retirees in this phase, they are busier than they were prior to retirement.

In the second stage, the body tells you to slow down a little. Often this happens between the ages of 76 and 84. We are creatures of habit and so in this stage, life starts falling into patterns and the excitement of retirement becomes more stable. We fall into predictable patterns like banking on Mondays, groceries on Tuesdays, bridge on Fridays, etc. 

Part of the reason for these patterns is that energy levels are changing, and patterns help minimize effort and thought without compromising on the enjoyment of life. The older you get, the more important it is to find routines and patterns that give you comfort and security.

In the final stage, time and age play a role in slowing down activities and abilities. Sometimes this is mental, sometimes physical, and sometimes it can be financial.

Often this stage requires some level of support from family, governments, or agencies. Again, this can be physical, emotional, or financial support. Choices become much more limited, and we move to complete unresolved issues before we die.

With an understanding of the three stages then it is a good idea to start by listing a number of questions such as:

·        What would a successful retirement look like for you?

·        What’s still on your bucket list?

·        What would a good “average day” look like for you?

·        What kind of retiree/senior/elder/grandparent do you want to be?

·        Who do you want to spend time with during your retirement?

·        What would be the ideal community for your retirement years?

·        What type of house could best meet your needs after you retire?

Answering these questions about each stage of retirement can help you more easily move on to the important decisions that impact your finances. Ideally, you’d start exploring your answers at least five years before you plan to retire. In my case, I explored all of these questions for five years after I retired so some of the questions for me were redundant. But if you haven’t already started and you’re closer than that or even retired, it’s better late than never!

·        When would you like to retire? How will you decide when to retire?

·        Do you know what your living expenses might be in retirement? Have you developed a budget?

·        Do you have a plan for developing sources of retirement income that can cover your living expenses?

·        Will you be able to live in your current house if you or your spouse become frail later in life?

·        Do you have a plan if you reach a stage in your life when you’re no longer able to manage your day-to-day finances?

·        When’s the right time to ask these questions?

It might take some time for you to reflect on these questions. Important decisions deserve your time and attention. Also, remember to talk to seniors who are in each of the stages mentioned above as that alters or helps evolve your thinking as you explore your answers and approach your planned retirement date. It might turn out that your journey of reflecting on the questions may be as enlightening as the answers themselves. Along the way, you might find even more questions to ask yourself.