Expert Tips for Planning Your Golden Years

Most people have a career plan. Workers know where they want to go, and what they want to achieve. But for retirees, the path forward isn’t always obvious. Yes, you know you should be doing something. But what, exactly, often remains elusive. There’s no template.

What’s more, financial concerns are often real. You don’t always know whether you’re doing the right thing. This article provides some expert tips for planning your golden years. We look at managing your money while ensuring you spend the time wisely.

Ensure You’re Ready Financially

Ensuring you are ready for retirement financially is essential. Getting it wrong can lead to years of misery with no way to work to get yourself out of a bad situation.

But what should you do?

1. Know Your Income

Start with working out your retirement income. Considering your sources of money can help you figure out whether you have enough to do what you want when you leave work.

In the UK, sources of income could include:

• Private pensions (average or final salary)
• Public pensions
• SIPP income
• Dividend income from shares
• Earnings from companies you own
• Income from fixed-income assets (such as gilts)
• Rental income from owned properties

Adding these up should tell you how much money you have coming in every month. Then, you can compare this to your expenses to see if you can live comfortably.

2. Pay Off Debt

At the same time, you should focus on paying off any high-interest debt you owe. Credit card payments can be excessive and reduce your ability to spend on the things you want in the future.

Even mortgage debt can be a burden if you don’t have the income to offset it. Therefore, you may also need to downsize – reducing the size of your home so you can meet your other obligations.

3. Leave Money Aside For Unexpected Expenses

At the same time, you’ll want to leave some money aside as a buffer for unexpected expenses. These could include major repairs on your home, long-term domiciliary care (where carers come to your house), medical emergencies, and car trouble.

4. Get Professional Guidance

If your financial situation is complex, get professional guidance. Financial advisors can tell you what your next move should be and how you should proceed using the information you provide.

For example, they might recommend:

• Consolidating outstanding debt into a single loan
• Working for an extra two years to build more savings
• Downsizing your home
• Reallocating the investments in your portfolio

Thriving Beyond Money During Your Golden Years

Of course, living a great life during your golden years requires going beyond money considerations. It also implies doing something you find valuable.

Here’s how to make that happen:

1. Define Your Goals

Start by defining what you want to do when you finish work. Outline how you will spend your time to feel fulfilled.

Common objectives include:

• Spending more time supporting younger family members
• Starting a passion project (like restoring a classic car)
• Learning to play a musical instrument or speak a second language
• Building more friendships or joining clubs

For those moving abroad, expat retirement planning is usually more involved. You will need to consider medical insurance, the climate, and what you’ll do thousands of miles from home.

2. Stay Active

Next, consider how you will stay active. The more movement you can get during your golden years, the better.

For example, you might:

• Join a local golf club and visit three or four times a week
• Commit to walking to the shops and Post Office instead of taking the car
• Use a bicycle to get around town
• Join a local gym or fitness class
• Hire a personal trainer to come to your home to help you with mobility
• Volunteer to do something physical, like help the local Scout group

As you enter your golden years, don’t assume your body will continue to serve you as it has done in the past. Exercise should become more of a focus to reduce muscle wasting and bone loss – two problems most apparent in the over 65s.

3. Don’t Isolate Yourself

At the same time, you also want to avoid isolating yourself. Spending long stretches alone in the home can affect your feelings and physical health. Join organisations and local clubs, and devise a plan to stay in touch with old friends.

Give Back

Finally, look for a way to give back to the community. Serving other people can keep you feeling positive about your life.

So there you have it; some expert tips for planning your golden years. Often, retirement is what you make it. If you get it right, it could be the time of your life.