One of the questions most commonly asked by people thinking about their retirement is “How much money will I need”. It’s a good question and a good place to start thinking about your retirement – but it only supplies part of the answer.
The Australian Superannuation Funds Association survey in March 2013 suggests that a “comfortable” retirement will cost a couple around $56,300 pa. A “modest” retirement would cost them around $32,600 pa.
If you would like to use a retirement calculator and your own figures to see how much you can afford, click here. This government web sites will give you access to a retirement calculator.
What we are not told by a retirement calculator and most of the retirement planning industry is that it’s equally important when thinking about our retirement that we consider some of the major lifestyle issues. Let’s face it, you can have a million dollars in the bank but if your health is poor or the relationship with your partner is strained, the next 20 years might not be much fun.
The reality is that to achieve a secure, happy and satisfying retirement, most people have to manage these 5 issues:
- Their finances
- Understanding what life in retirement will involve
- Their health and wellbeing
- Their important relationships
- How to find lasting happiness
Understanding what their new lifestyle will be like
There are a number of lifestyle issues that you are likely to be challenged by. Here are a few of them – handling change, staying active & involved, renegotiating domestic responsibilities, giving your partner space, your important relationships, where to live, avoiding a loss of identity and purpose.
If you don’t think about these lifestyle issues in advance, they may be a lot more difficult to handle when they arrive. Our book “The Rest of Your Life” gives you lots of good advice on managing these and other issues. You can buy it by clicking here.
Organising their finances
Organising your finances to get you through the next 20 – 30 years isn’t easy. Unless you have specialist knowledge, it’s a good idea to get some assistance from someone who does. Help is available from financial planners, your super fund, possibly your accountant. It might cost you money, but should save you a lot more in the long term.
Don’t forget that you also need to talk to a lawyer about estate planning. If you don’t at least get a will, you’ll have little control over who your assets will go to.
Health
After 50, exercise is no longer optional. To make the most of your years in retirement, you need to have reasonable health and mobility. The good news is that getting older does not automatically mean being frail and sick. If people adopt a lifestyle that incorporates regular physical and mental exercise, a sensible diet and a positive, optimistic attitude, they can delay the ageing process.
We have published a new book on Health for the over 50s and you can buy clicking here.
Relationships
Retirement can be tough on relationships. As our important relationships have such a major impact on our lives, it’s important that we invest time and effort to make sure they are in good shape. Our book on Relationships contains lots of useful advice. It’s available by clicking here.
Happiness
Happiness or unhappiness doesn’t just happen. While we can’t control what life throws at us, we can take steps to have more control over our mind and our attitude. This way we can better control our response to life’s challenges. You can find some helpful advice on finding happiness at the Happiness Institute: www.thehappinessinstitute.com.au
If you give some thought to these 5 issues rather than just focusing on how much money you will have, your chances of a secure, happy and satisfying retirement will be greatly improved.
Paul McKeon