Many people think about their retirement often and most begin their retirement planning way before they are close to retirement age. However, some people only consider how much money they need in their RSP’s or pension when discussing their retirement plans. There is so much more that you need to know and to consider.
Here are 5 facts that no one ever told you about your retirement planning:
Lots of time with your partner
You will see much more of your partner than you ever dreamed of during retirement! While this can be a good thing, it can also get tiresome and overbearing at times. You may even start to get on each other’s nerves.
In order to prevent any issues from happening on the home front, you will both want to keep active in your own lives. You can continue with hobbies that you have each enjoyed over the years or you can both try to find new hobbies to occupy your time. There are many local establishments where other retirees spend their days and you may want to drop in and make a few new friends. Even though you are retired, you are still young enough to learn something new. A local college or community center may offer classes on a subject that you are interested in or want to learn more about. Charities are always looking for volunteers and this is something that you can do with your partner without worrying about being together too much. You’ll both be too focused on helping others to pay attention to each other.
You may be retired, but many people continue to work part-time. A part-time job is the perfect way to increase your monthly income and put more money into your bank account. When it comes to retirement planning, a part-time job can be equivalent to almost $400,000 in your bank account. You are able to live off most of your part-time income and keep your retirement money in the bank accruing additional interest. This can help you live the lifestyle that you are accustomed to for a longer period of time.
Longer life expectancy
You might think that you will only live to see 75 or 80, but the chances are that you will live a lot longer than that. The medical options that are available to both you and your spouse are better than they were ten and twenty years ago, and they will extend your life expectancy. Plus, if you have reached the age of retirement with no major illnesses, there is a greater chance that you are going to have a longer life expectancy.
Most employers will invest in your retirement plan up to a certain amount as long as you’re contributing to it. Make sure that you haven’t been losing out on free money all of these years and if you have, make sure that you correct it now by contributing to your plan. Any free money that you can get will help you live better during retirement.
You might not need a million dollars to retire
While many news and media outlets suggest that you will need more than a million dollars for retirement that may not be the case for you. You’ll find that you will have your own personal expenses during retirement that are unique to you. Some retirees want to travel, and some will be happy and content spending less. Your financial situation is unique to you.
Retirement planning may not be exciting cartwheels and flips but the choices that you make now will determine how well you can live later in life. The more you talk, educate yourself and give yourself plenty of time to prepare, the happier you will be.