3 questions you must ask before you reach retirement

As we grow up, the money that’s put aside for our pensions is often scorned upon. In other words, it almost feels like “lost money”.

And then, retirement comes. As anyone who has reached the R-age will testify, this is the time where all of those savings from your pension scheme are completely vindicated.

Of course, for many people a pension isn’t enough. Particularly if you have a family, who might even still need your support even after leaving home, you might need to be a little more creative as you get older. Through the course of this post, we will take a look at some of the pressing questions that can help plan a more seamless retirement.

 

Question #1 – Have you thought about the out-of-the-ordinary expenses?

This has been named as the first question as it’s really the one that most people don’t even consider. Sure, it’s easy to think about the cost of groceries, and how you can afford to put food on the table – but what about those out-of-the-ordinary costs?

For the purposes of this post, these costs are classes as everything from elderly care costs right the way to funeral ones. Both of these tend to be easily forgotten, even though they will almost certainly be required – at least in the case of the latter.

As such, make sure that you account for everything reasonably possible. Clearly, this doesn’t involve tiny issues like the cost of sending a letter, but when it comes to the big expenses like those discussed you will need to invest some thought into them.

 

Question #2 – How much income can you replace?

As we all know, as soon as you retire you lose something that’s been with you for the last few decades – your paycheck. It’s at this point in which you need to calculate just how this missing ingredient of your life is actually going to be replaced. For some of you, the answer might be very simple and involves a pension. If you are in the fortunate position of being able to rely completely on your pension, feel free to skip to the next section.

If you aren’t quite so lucky, it’s time for some creative accounting. This might involve calculating when your mortgage is going to be paid off, or even which pastimes you can place on the backburner. There might have to be some give-and-take at this point, but it’s better to do this years in advance than getting to the crunch and realizing you’re suddenly in a dire financial position.

 

Question #3 – What should you do with your time?

This final question leads on perfectly from the previous one; what exactly will you do with your time? This can link to your finances, or it might even just link to your boredom-threshold.

A large number of people retire, only to return to work a little later as they didn’t know what to do with their time. Again, this can correlate with the previous issue we spoke about, and for some of you it might even be worthwhile returning to work on a part-time basis if you’re just missing the daily routine too much. In other words, you don’t have to retire “permanently”.

 

 

 

 

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