6 Small things to help you prepare for retirement
Published on Fri Jul 3 2020 in Lifestyle
Reaching retirement is a major milestone. It’s a time of relaxation and fun for many, but it often takes a lot of planning to get to that point!
Preparing for retirement might seem daunting, however not every step is a big one. There are many small things to help prepare for your retirement years. Here are six steps you could start now that will help make your golden years less stressful.
1. Talk to your partner & family
Retirement often means big changes for the person leaving work. But, it can also mean big changes for their spouse and family, too. This could be why many retirees find themselves fighting with their loved ones more after they’ve retired!
As you near retirement, take some time to talk to your partner and family about what your new life might look like. How does your vision compare to theirs? Now might be a good time to rethink some parts of your plan and make compromises that work for everyone.
2. Test out your budget
Many people create a new budget when they retire. For some, this means big changes to how their lifestyle looks now. Jumping straight from your current budget into a leaner retirement one could come as a shock!
Before you retire, it may make sense to test out your future budget. This could give you a better sense of what your life will look like and decide if it really works for you. If not, you can rethink parts of the budget or set more money aside (if needed) while there’s still time.
3. Start downsizing now
Retirees often decide to sell the family home in favour of moving to a smaller, more manageable property. However, they may find that the decades of stuff they’ve collected just won’t fit in their new space. If you’re considering downsizing your home when you retire, you may want to start the process now.
Sorting through an entire lifetime of things takes time, and it may be easier to do it long before you move. You may decide to give special items to family and friends or donate unwanted items now, so you won’t need to pack and move them later. Selling items could also be a great way to boost your retirement savings.
4. Safely store important documents
When someone passes away, their family usually needs important documents to help close out their estate. This may not be a fun thing to think about, but gathering and safely storing this paperwork now could make things easier for your loved ones when the time comes.
Documents to pull together may include your birth certificate, marriage (or divorce) certificate, your Will, advance care directive, funeral insurance or life insurance policy schedule and funeral wishes document. These should be stored someplace safe, such as a filing cabinet, safety deposit box, with a solicitor or with a trusted family member or friend.
5. Make a plan for your digital assets
Just about everyone today has digital assets – files or accounts that are saved to computers, mobile devices or on the internet. When you pass away, your family may need to access these too.
There are steps you can take to make it easier for your loved ones to gain control of your email and social media accounts, as well as download photos or other files you’ve saved. This may include leaving usernames and instructions in your Will or backing up your computer to a seperate hard drive.
6. Reconnect with friends (or make new ones)
As we get older, our social circle tends to get smaller. This can make retirement a lonely time for some. Now might be a good time to focus on the friends who could help make your golden years more fulfilling.
Take some time to reconnect with friends or family you’ve lost contact with. Finding ways to make new friendships may be a good move now, too. Joining a social group or volunteering are ways to meet new people who share some of your interests.
About Author: Momentum Life is a leading provider of Life insurance and Funeral insurance in New Zealand.
The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.