Does retirement really exist?
The paradigm of retirement has shifted over the last decade into something more of a semietirement. It’s not what it once used to be. Without pensions and social security income, more people will find it difficult to save enough for a traditional retirement, while others may just agree that the term, “retirement”, takes on the meaning of new beginnings. For many, it’s a time that is not necessarily about giving up work all-together, but a rite of passage that allows you to finally do what you’ve always wanted to do and enjoy doing it.
As a so-called, retiree, you’ll probably make a decision to leave your current role to embrace a new path, or a less stressful job. Maybe you’ll retire, but remain an advisor, or consultant at your firm. Perhaps you’ll work at a local store, or open your own business. Maybe you’ll decide to make a big move to a place better suited for your golden years, or you’ll stay exactly where you are. Whatever your case might be, you will definitely need a stream of income. Do you have one?
Here are a few ways you can still enjoy a semietirement lifestyle, without worrying too much about your financial situation.
Follow a lowisk investment strategy.
By the time you reach your 50s and 60s, you should be focusing on preserving your wealth. If you didn’t save, or invest enough throughout the last three to four decades of your life, now is not the time to take an aggressive approach. Focus on protecting and growing your current savings. The worst thing you could possibly do is put your money in highisk investments. Not only is there a large probability that you will lose your principal, but you will most likely not have enough time to recover from the loss. While highly volatile markets are cyclical, timing is not always on your side. Consider shifting your assets to investments that protect both your capital, as well as any accrued interest. Also, remember to search beyond institutional investments. Some alternative options can provide the right risketurn ratio your portfolio needs.
While a semietirement most likely means you’ll have to continue working past 65, working throughout your retirement years shouldn’t be discouraging. Many people who retire with no after plans will find they get bored quickly. Finding ways to keep busy exercises the mind and helps you stay sharp, while also helping you feel more fulfilled. If the idea of another day at work sounds more like a drag than a dream, consider a change of pace, or career. Find a job you enjoy, or one that allows you the flexibility to pursue other goals. It could also be the perfect time to turn that hobby into a profitable business. The idea of staying employed shouldn’t keep you from enjoying your golden years, but rather sustain you financially, so you can also relish life.
Live below your means.
Living frugally is always a smart move, especially during your retirement years. It’s a time to find pleasure and enjoyment in the simplicity of life, while living comfortably in the company of your loved ones. Is it not? Sure, most of us dream of traveling the world, or finally moving to that beach apartment we’ve always had our eye on, but when reality sets in, retirement feels more like a luxury most of us can’t afford. However, you can still explore new places and take on new adventures that perhaps you never had the time to do before. The best way to get the most out of a semietirement is to plan accordingly. When you budget throughout this time of your life, you will allow yourself to plan for things you enjoy, without neglecting your actual needs.
Investing in your well-being is pivotal when it comes to enjoying any kind of retirement lifestyle. While you can’t change genetics, you can definitely make decisions that improve your health and make you more resilient towards sickness and diseases, which ultimately helps you spend less on medical bills. Healthcare costs do increase significantly during retirement. According to statisticbrain.com, the total cost for a couple over 65 to pay for medical treatment over a 20 year span is $218,000. So what does this teach us? Exercise, eat right and make quality decisions regarding your health. This way, you’ll spend less on your healthcare and more on what makes you happy. Remember, you only have one body and one life to live. Every decision counts.