Lifestyle
Planning for your retirement means making conscious decisions about issues that may have been routinely made in the past - like where you'll live now that you no longer have to punch the clock!
It means looking ahead to what the future holds, and adjusting your thinking - and your lifestyle - accordingly. With children now grown and work no longer a factor, how will you spend your extra time?
The more clearly you can visualize your retirement lifestyle, the more likely you are to ultimately attain it. So take a moment to reflect on what your future holds.
If you're in a relationship, you and your partner should reflect on your retirement goals and aspirations separately. Put them in writing, if possible, and then compare notes. Discussing and sorting out any differences in expectations well in advance will make for a smoother journey later on.
Where You'll Live
Where you live in retirement has a huge impact on the amount of money you'll ultimately need.
For some, a move from city to country once they leave the workforce, or to smaller premises once the children are grown, is the perfect prescription for both economy and lifestyle enhancement.
For others - future "snowbirds" planning to winter in warmer climates, for instance - housing costs can increase substantially.
Ask yourself these questions:
- where will you live in retirement?
- do you plan to move to another province or community?
- will you remain in your current home, or downsize to an apartment or condo?
- are you thinking of buying or renting a second home, or wintering outside the country?
How You'll Spend Your Extra Time
Retirement frees up almost 2,000 hours a year of time previously spent working. How you use that time will also impact the resources you'll need.
If you have gardening, volunteer work, or community college courses on the agenda, your expenses may be moderate. Other pastimes - like travel or golf - can account for a larger chunk of your annual budget.
Ask yourself: what will you do in retirement?
- will you participate in new social activities, travel, dine out, go to the theatre more often? or,
- do you prefer, instead, a quiet, home-oriented retirement?
- what types of activities are you most likely to fill your time with?
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