The joys of retirement are many, including time to travel, socialize, play golf or other recreational pursuits, and generally enjoy a more leisurely pace. Planning ahead can help ensure you have the financial resources to enjoy these activities, worry-free, for as long as possible.
Planning also means considering your later years of retirement, when you may slow down or need additional care.
This is the phase, typically between ages 65 and 75, where you have the hips and heart to participate in active endeavours. Now’s the time to get out the bucket list and follow your dreams while you’re at your most active.
Less Active Retirement
During this second phase of retirement, activity levels may be more moderate. You might choose to cut down on driving or stay closer to home when you go on vacation. Additional health-related expenses may enter the equation. The key during this time is to accept any limitations as graciously as you can. Enjoy life and focus on everything you can, rather than can’t, do.
Making the most of your active and less active years
One of the biggest concerns during the active phases of retirement may be whether you can actually afford to do all the things on your wish list without compromising your future financial situation.
This is why having a long-term plan in place is so important. A detailed plan, established before the onset of active retirement, will help give you the confidence to spend money on the things you enjoy—when you’re most able to enjoy them.
An acceptable plan is one where financial resources outlive the individual, says Doug, who adds that a financial plan should cover you through age 100+.
Visualize your future
In the next article in this series, Doug will share his tips for the second phase of retirement: Getting help. For an overview of how to plan for a rewarding retirement, read Navigating retirement: Plan to make the most of every phase.
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For more on how financial planning can help you navigate through all the stages of your life, read It’s never too late: Starting your retirement planning in your 40s and 50s, The new financial planning landscape for boomers and Your 30-day anti-budget: An exercise in awareness.