Retirement planning begins with a thorough understanding of your cash flow analysis: Where are you spending, and how? Where can you save? These crucial questions will apply not just to where you are today but will serve as your predictors to how you are on track to fare financially, once you retire.
When you are planning for retirement, you must be both honest and realistic about your health, your finances, and all of the factors in consideration for pursuing a fulfilling life.
Nowadays, people are living longer and more active lives than ever before. Nearly 2/3 of 70-year-old men and almost 75% of 70-year-old women will live at least another ten years, and more than 1/5 of men will make it to 90, as will 1/3 of women. That means we all need ample income as part of our retirement planning, to ensure that we don't outlive what we have saved. For those with more significant assets, putting the proper estate planning in place will be essential for guaranteeing those assets will take care of your family and younger generations.
It's also important to consider your wishes for not only how you will live in your retirement years, but where. You may wish to remain as independent as possible for as long as possible, and that is a wonderful goal. However, as difficult as it may be to consider, your retirement planning should account for the possibility of assistive home care or for relocating to a senior living community or facility.
A large part of your retirement planning requires you to identify your retirement goals. Do you want to live as a "snowbird" with a second residence for the winter months during your active years? Do you want to downsize to a smaller, independent living home or keep your family home? Consider who and what matters to you most, and then leverage your current cash flow analysis to work toward your goals.
If you would like to learn more about retirement planning, as well as the factors you need to consider now, and in the future, please feel free to contact me directly at rgibb@hapanowicz-associates.com.