When you think about your retirement, what is the first thing that comes to mind?
If you're within the majority, your first thought will be your financial situation - you may think of your current or planned retirement savings, such as retirement annuities (RA), provident and pension preservation funds. You might ask yourself questions like, 'have I saved enough money to retire comfortably?', 'who will/how will I manage my funds in retirement?', 'how much will I need to withdraw each year to cover my living expenses?'.
But, is that Enough?
Although investments and financial planning are essential to ensure a secure financial future, it's important to consider that financial security alone may not bring true happiness. Retirement is a time of major life changes, including changes in our social networks and daily routines. For many people, work is a central aspect of life (both literally and socially), and leaving the workforce can lead to a sense of isolation, feelings of disenchantment, and even grief for the stage of life you are moving away from.
Investing time in relationships, and focusing on the ‘emotional returns’ we will receive in retirement is crucial.
One of the most important things to consider when planning for retirement is how to stay socially and emotionally engaged. Social connections provide a sense of belonging and purpose in our lives and can involve joining certain clubs or social groups of interest to you, volunteering in areas of the community that you find important, and connecting with friends, both old and new.
Moreover, the people we surround ourselves with in retirement greatly influence our overall happiness. Spending time with loved ones, whether it's family, friends, or a significant other, can provide a great sense of joy and fulfillment.
It is also important to consider how you would like to spend your time in this phase of life. Many people have a bucket list or goals that they want to achieve in their retirement, such as traveling, taking up a new hobby, volunteering for a cause they're passionate about, or even securing a part-time job in a field of interest. Having a clear idea of what you want to do in retirement can help you stay engaged and fulfilled, and allows us to help you plan your finances more effectively.
The Nitty Gritty
There is no denying that financial security is a major factor in retirement, and planning for your financial affairs during retirement is crucial to ensure that you have enough money to support yourself and your dependents or loved ones. However, it is equally important to plan for our social and emotional needs as we enter this new phase of life. It is important to seek out professional guidance from advisers like ourselves to achieve this balance. We can help you navigate your unique transition into retirement and identify strategies to achieve your goals in all areas of life.
As independent financial advisers; we at Finpas work with our clients to develop comprehensive retirement plans that take into account all aspects of your lifestyle, needs, and goals, including your social and emotional well-being.
By developing a well-rounded retirement plan, we can help you to ensure that your retirement will not only be financially secure, but also happy, purposeful, and fulfilling for YOU, based on your needs, goals, and values.
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