Are you close to beginning the next stage of life with retirement? Are you looking for ways to prepare for life after you retire from your career? If so, then you should consider the facts of living in retirement.
Knowing all that you can about retirement can help you make plans for the next stage. If you know things such as the cost of living in retirement and tips to living a simple life in retirement, then you can be strategizing for those things with your financial advisor.
See below for several facts about living in retirement. Use these to your advantage as you get ready to move into that phase.
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1. It Will Probably Last Two Decades
That’s right, ladies and gentlemen, recent studies have shown that you can expect to live a longer life than your grandparents or their parents before them.
Many statistics have shown that men and women tend to average a life expectancy of around 79 to 80 years old. However, those that reach the age of 65 have a higher chance of reaching the age of 85 years old.
For that reason, you can expect your retirement to last at least two decades. Let that be a wake-up call for your retirement savings pattern as well. You’ll need more savings in order to comfortably spread it out among a twenty-year span.
No matter what age you’re at, it’s never too late to start saving for retirement. Be sure to manage your personal finances to prepare for a lengthy retirement!
2. Not Many People Have a Plan
Unfortunately, there are a great number of people currently working in America that don’t have an actionable retirement plan in place.
The American dream used to control this for them. It used to be that you’d stay at one company long enough to gather a pension to use in your retirement. That’s not an option for most people these days.
As such, you need to make alternate plans. While the pension might not be available for you, a 401(k) plan is.
Many companies offer a 401(k) plan with matching contributions up to a certain percentage. For example, your employer might be willing to match up to 5-percent or 6-percent of your total paycheck.
If your company doesn’t offer a 401(k) or you work a freelance position, you can enroll in a traditional or Roth IRA instead. These give you options to save for retirement with an experienced brokerage firm surveying your contributions.
3. Travel Expenses Are an Oversight
If you’re like most people, you’ve probably used the phrase “it will still be there when I retire” when talking about traveling to awesome spots. First off, that might not necessarily be true for places like Venice, a city that’s literally been drowning for centuries.
Second, you’re probably not factoring in the expenses that you’ll have when you travel to faraway places. Those need to be viewed as a separate type of savings for whenever you retire.
While it’s true that your retirement savings are meant to cover everything in retirement, you will need a bigger savings amount if you plan to travel frequently.
If you stand pat with your current contributions, then you’ll have to make ends meet once you retire to travel. That might mean moving into a cheaper place or taking a part-time job to pay for your traveling expeditions.
Get with a trusted personal financial advisor in order to calculate how much they’d advise you to save for the lifestyle you plan to have once you retire. If it includes a lot of traveling (which it should), then you’ll want to be prepared for it.
4. You’ll Want to Work In Retirement
Here’s a fact that not many financial security companies will share with you: a growing number of retirees are working in their retirement because they want to.
Many of them have admitted that they get value from working. It’s where they’ve learned to grow, made friends, and find purpose in their life. For that reason, many of them choose to get a job in retirement
For some that might mean getting a part-time job just to get out of the house. Others will start a brand-new career to bring a new challenge to their lives.
With that job comes a little more money in your pocket, which means you can feel a bit less stress about how much money to save for retirement. If you feel that you won’t want to work after retirement, then be sure to save money accordingly.
5. You Will Cherish Relationships More Than Ever
Many people fear that they’ll spend their days of retirement scrounging for scraps. They fear of being 65 years or older and trying to make ends meet, worrying about money the entire time.
However, current retirees will tell you that’s never going to be the case. As long as you actively save for retirement now, you can make any budget work.
Instead, it will be the relationships with people that you’ll focus heavily on. You’ll prioritize getting the chance to communicate with people, get out to social events, and enjoy life the way you were meant to.
Take the time to focus on your retirement savings now so that you can enjoy the pleasures of life when retirement comes around.
Living in Retirement: Look Forward to the Next Stage of Life
As with any other stage of life, living in retirement is all about making the most of the situation.
Do you need a loan to cover other expenses while you save for retirement? If so, then be sure to read this page and learn how Bonsai Finance can help you fix your financial challenges.
For more inquiries, please feel free to reach out via our customer service page and we will be happy to assist you further.