The three stages of life in retirement and how to plan for them.
Your life in retirement is likely to be different from your current life. But how different?
Consider retirement as the first day of the rest of your life – not an end but a beginning. Like any other stage in life it’s worth planning for the life you want. Here's the three stages of life in retirement and how to plan for them.
Kick off with the freedom years, health willing. Maybe you’re giving up paid work or cutting back on family commitments. Hopefully you’re freer to focus on you. Time to spend some of your hard-earned money and enjoy life – travel the world, enjoy your hobbies, treat your kids and grandkids, make inroads on your bucket list…
In your seventies and eighties, the pace of life might have slowed but the good things in life can still be enjoyed. You’re comfortably set up in the place you call home and able to afford small trips away to visit family and friends. Health might be an issue so having savings and insurance will help give peace of mind.
Chances are you’re less mobile and less independent but as always quality of life counts. Health related expenses are likely to be your biggest cost while other expenses have probably decreased. You’ve enough for yourself and maybe even some left over to give away.
Whatever age you plan to retire, chances are it will involve a change of pace – and that pace will keep changing. Financially it’s worth considering how your life and habits change throughout your retirement and make a plan.
No matter how close or faraway you are from retirement – you’ll need some money when you get there. We think investing in our Managed Funds is a great way to start because, over the long-term, managed funds usually generate greater returns than term deposits. And, unlike KiwiSaver, you can access your savings when you want to, before 65 if you want to retire early or after 65 to supplement your KiwiSaver.
Learn more about Kiwi Wealth’s Managed funds here.