retirement-savings-tips

Having Realistic Retirement Expectations

Have you given much thought to what will happen once you’re no longer working? What pastimes or activities would you want to engage in? Will you enjoy finally being free of having to go to work every day or are you going to miss having the sense of purpose associated with full-time employment? 

Your overall happiness, wellbeing, and financial status are key points to think about at a time like this, and the tips below will go a long way in helping you set realistic expectations for this time of your life. 

  1. Don’t Assume that you’ll be Happy to Stop Working

Although everyone looks forward to the day they’ll be able to retire to some degree, not everyone is fully prepared for when they’ll wake up every day and not have to go to the office anymore. Several individuals work for many years, and suddenly having to give that up can leave them feeling empty or unfulfilled.

If you don’t stop to think about how you’ll deal with these feelings as they arise, you could find retirement to not be as enjoyable as you thought it would be. To deal with this, allow some time to think about these negative feelings and find ways to address them. For instance, if you were an accountant, consider providing your services to one or two of your existing clients each month. Over time, this will benefit you and your employer. 

  1. Know what you want from your Retirement

You need to spend a bit of time thinking about how you want your life to be after you stop working. Do you just want to relax at home or would you prefer to travel the country – or even visit other countries for part of the year? 

Knowing how you intend to spend your time is a crucial step in the retirement process, and being realistic about your financial situation, overall health and other mitigating factors will help you decide how much needs to be saved and invested beforehand to make your dreams come true. 

Keep in mind that it’s also quite normal for your retirement goals to change over time and as such, your savings and investment plans may need to be adjusted accordingly from time to time. 

  1. Get Started with Saving Now

Younger people seldom take the time to think about the amount of money they’ll need to retire, and when they do, they often make the mistake of thinking about the current cost of living – and forget to take inflation into account. When looking at how things have changed over the past decade or two, it’s safe to say that the level of inflation being experienced at the moment looks set to continue for quite a while longer. 

When planning your retirement savings, ensure that inflation is being accounted for; otherwise, you could find yourself struggling financially once you’re no longer working. Setting realistic expectations about your retirement right from the beginning will make this time of your life a lot easier to deal with. If you’d like to learn more about saving towards retirement, contact us today.