Thinking about retiring? Here's a checklist to consider if your retirement ready.

While we looked forward to retirement for years, actually retiring is another matter. To give up work is a major change. Greg was ready to retire way before me. It was a decision I struggled with more than Greg.

To give up work is one thing, to give up a wage is another. But, retiring is more than giving up employment and a wage. It also involves letting go of people you worked with, security of the known and familiar, established routines…. So much changes.

When contemplating retirement there are so many things to consider. I put together this checklist with some ideas to consider.

Retirement savings

Or, put simply, do you have enough money?

This may sound a simple question. Yet, we found it a challenge to try and grasp if our retirement savings were indeed enough.

Some suggest you need approximately 80% of your pre retirement income to live much the same lifestyle in retirement. Yikes!!!! What if you haven’t that amount?
I found the ASFA Retirement Standard extremely helpful. The ASFA Retirement Standard provides a benchmark for an annual budget for a modest and a comfortable standard of living for Australians.
Will I be eligible for any benefits, pension and services? For many people considering retirement, the determining factors may be access to a benefit, pension or services.

Financial Advise

What are your financial advisors telling you? I am amazed to hear some people approaching retirement say they haven’t spoken to any financial advisor.

Seek advise about your superannuation and any investments you may have. See your accountant. Get well informed about your financial status. Information is power. Once you have as good an understanding of your financial status as possible, then you can make decisions.

A friend suggested we seek advise from several financial advisors re where to invest our superannuation. We thought we would seek advise from 3 advisors. But after seeing two, and getting very conflicting advise, there was no way we wanted to see a third.

We spoke to our accountant. She did not give us financial advise. However, one comment really stood out to us. She said that there was no garauntee that one financial advisor would earn more than the other. We found this comment so helpful. For us, the interest rate being charged and the strength of the superannuation company became our focus. This may not be everyone’s focus. But, bottom line, get financial advise to consider. If you don’t know where to start try seeking retirement advice at Centrelink.

Retirement budget plan

Work out a budget plan before you retire. This will help provide a reality check:

Review expenses – can they be reduced? For example, can you get cheaper insurance
Consider what your priorities
What are you willing to sacrifice, if necessary, to retire

Financial dependents

Do you have family members who are financially dependent on you? In some cases this is essential, but in many families it’s not. Perhaps now it’s time to:

wean those family members who have remained financially dependent on you
help family members learn to be more financially independent
break your habit of being overly generous and always paying (like you did when they were children)

Home maintenance and big ticket items

In the years leading up to retirement, try and have major home repairs and renovations attended. Also, replace an old car. These are major expenses. If possible, get these major expenses out of the way before you retire. Otherwise, these expensive items will take a big bite out of your retirement savings.

Travel

In retirement will you be able to afford to travel?

Before retirement, perhaps you may prefer to continue working, to pay for the expensive, big ticket dream trip.

Many want to be retirees enjoying travel. Who doesn’t? For some, the desire to continue travelling may mean they choose to continue working.

Yet, in retirement, retirees have time to plan holidays and look for special travel deals. There are great bargains out there. If you are available to travel at the drop of a hat, then great travel savings are available. And people can travel on a budget.

Routinely set money aside from your budget for holidays. This way you can plan a holiday you can afford. Perhaps you may choose a bigger holiday once every two years?

Do you really want to retire?

Age doesn’t determine when we are ready to retire. Some people choose to retire early, others choose to continue to work.

Don’t bend to peer pressure, and simply follow what others are doing. Retire when you feel you are ready. If you remain uncertain about retiring, try options such as long service leave or holidays, before making the final decision.

And, some people may choose to never retire.

Transition to retirement

Perhaps you might prefer to transition into retirement. Reducing the hours or days you work may be a great way to ease yourself into retirement. For many, transitioning into retirement is a win win solution. They gain the benefit of extra time to themselves, without loosing their employment status and benefits.

You may be able to access a part superannuation payment, to supplement your salary, as you transition to retirement.

Retirement lifestyle

What will you do each day when you are retired. Have you any ideas? Perhaps you have a list as long as your arm. Or you might be worried about becoming bored in your retirement.

When I was working, I didn’t have hobbies. I was too busy working, and in my spare time catching up with family and friends. So, I for one, was very uncertain what I would do in retirement. But you know what? I found, once the dust settled, I was able to make decisions about what to do with my time. And you know what else? You don’t have to necessarily have hobbies! You can do whatever you like.

A friend said she was going to take a “gap year” after she retired. This meant she wasn’t going to take up any invitations to join committees, new hobbies, volunteer etc. She planned to enjoy a rest and not rush into new things. Expressing this intention to take a gap year also gave a clear message to others. Once you free up time, others may want your time. And that’s OK, if that was your plan for retirement.

Yes, retirement may bring some hiccups. And, yes, our lifestyle will most definitely change. I believe we will more than adjust, adapt, and survive the transition to retirement. Retirement is simply like every other transition we have gone through in our lives. So, let’s embrace the somewhat different lifestyle retirement offers us.

Thinking about retiring? Here’s a checklist to consider if your retirement ready.

To retire or not?

Retiring is such a major decision.

Here are a few points to consider about retirement.