Retirement is meant to be an enjoyable and stress-free part of your financial journey. To make the most of your retirement, you need to take advantage of time. The choices that you make in the years preceding retirement play a crucial role in determining the quality of your golden years. So how can financial planning help?
Planning makes you take a close look at your commitments, needs and wants. Priorities could vary from one family to the next, but retirement is a universal priority. The dynamics of post-retirement life are changing. Life expectancy is improving, aspirations are evolving, and family structures are changing.
Retirement planning isn’t a one-time exercise. It’s important to remember that there are twenty or thirty years of life after retirement. That’s a very long time and things could change significantly over that time frame. You may well be entering into a phase where you remain independent through retirement. You could be at the crossroads of having both time and money to chase after what you want.
Pursuing a hobby seriously, doing philanthropy, travelling, etc could be a part of your retirement plan. These are personal choices but are likely to alter your spending habits once you retire. Both longevity and medical care costs are rising. The financial stress of a large medical expense could feel more painful when you are not an earning member.
Advanced planning certainly helps. Taking stock of where you stand can set realistic expectations and prepare you for the road ahead. Being aware of risks and providing for contingencies can reduce the impact of unexpected events. Ultimately, financial planning helps secure your financial interests.
The best retirement plans are made by using the runway to retirement well. Deeply understanding the life you want to lead, the legacy you want to leave behind, and the challenges you could face will guide you towards making the right choices.
Our financial planning desk offers customized financial planning solutions. Make the most of your runway to retirement by getting your customized financial plan today!