Key things to consider ahead of your retirement
You’ve had your fair share of hard work, milestones and a lifetime of sacrifices – after spending decades dreaming about your golden years, your retirement is finally on the horizon.
But, planning your retirement isn’t all daydreams and daisies – there are some serious questions that you need to consider long before it’s time to enjoy your happy, care-free life.
If you’re a baby boomer on the brink of retirement, here are a few things to consider ahead of time:
Don’t leave it too late, plan ahead
You’ve lived a good life, you’ve raised a family and, lived through beautiful memories with them – now it’s time to put yourselves first and, plan your retirement before it approaches. The worst thing to do is leave your future to the last minute and, possible run out of savings when you need it the most.
Deciding on a retirement destination
Leaving your old home and deciding where to re-plant your roots is a tough decision for most retirees and, whilst the idea of retiring to the idyllic coast seems like the perfect answer to your retirement needs, it might not be the best option. When considering a retirement destination, some of the factors to consider include, proximity to loved ones, lifestyle needs, hospital care and other support networks.
Understanding the costs of retirement
Whether you’re purchasing a smaller home or moving to a retirement village with assisted-living services, it is a big step and of utmost importance that you understand the financial implications of your purchase. When comparing options, enquire whether moving into your retirement home will entail monthly levies, municipal rates, maintenance costs and, other future frail care fees.
Your healthcare needs to take priority
There are no two ways about it – growing old is complicated and will inevitably lead to a need for proper healthcare. Whilst healthcare costs are on the rise, medical aid schemes are becoming increasingly reluctant to fork out the costs for frail care, resulting in a crisis of confidence for the retirement industry. It is important for retirees to consider the ever-increasing healthcare price tag attached to retiring.
A safe place to call home
One of the biggest concerns amongst South Africans approaching retirement age is physical security – and, in a country with growing crime statistics, the idea of becoming a target at old age is quite a daunting one. When choosing a new home for retirement, be sure to scrutinise the village’s safety policies and priorities when it comes to its residents.
Will your retirement savings be enough?
With inflation on the rise, a growing fear amongst middle-income retirees are their retirement funds – is it enough? Whilst living a long life is a good prospect, it might not seem that way from a financial perspective and, whilst it is impossible to determine whether you will outlive your retirement savings, you can make the necessary adjustments, now.