7 things to do when preparing for retirement

Preparing for retirement tips via Shepherds Friendly

Congratulations, you’re ready to retire! No longer will you need to set an alarm to wake up at a certain time 5 days of the week.

Now is time for you to enjoy work-free life and put yourself first. But before you retire, it is wise to make sure you are preparing for retirement.

We’ve suggested 7 things you need to think about and consider when going into retirement to ensure you get the most out of it and are prepared for situations that you haven’t been in before.

Make sure you have your finances in order

It is almost a certainty that your financial situation will change when you retire. Your income is likely to fall and your spending habits are likely to change as you get older. You have probably been saving for your retirement for as long as you can remember and you’ll want to be sure that your retirement pot lasts you for the whole duration of your retirement, which is why drawing up a budget to make sure you have your finances in order is extremely important.

Note down your expected income and spending as early as you can to give yourself a good understanding of your situation. You should revise the budget regularly as your circumstances can change throughout retirement, depending on the decisions you make.

You might also want to consider how much money you are leaving behind in your estate when you pass away. Do you want your children or other family members to be left with a pot of money to put towards your funeral or similar? If so, it could be a good idea to consider life insurance.

Allow For a Transition Period

Many of us are afraid of change and cannot ‘change gears’ as easily as others. Developing a retirement plan ahead of time allows you to have a good overview of what you want to do and achieve in your retirement, then enables you to start making the preparations to do so.

Remember, it is easier to make smaller steps to make the transition from working to non-working life. If you rush into retirement it can be an intimidating process. Take each day with the view and determination to enjoy a positive experience and be grateful for the opportunities that come with a less hectic life.

Consider Volunteering

Many retirees find that volunteering is a very rewarding route to take during their retirement. There are countless opportunities to get into volunteering such as at charities, nursing homes, libraries or hospitals.
Is there an origination that is close to your heart or a hobby that you enjoy doing and could volunteer to do at a related organisation? Contact them and ask if they would like any help. It will give you great satisfaction as you are making a difference while doing something you love.

Take up a sport

If you are worried that retirement will give you too much time on your hands and you’ll become lonely or often bored, then taking up a sport is a good solution. You will be kept busy practicing, playing and enjoying team events (if you decide to join a club). A lot of people feel that they are restricted to time learning a sport during their working years so now is a great time to get involved with a sport that you have always wanted to participate in. It is also a great way to meet new friends who have similar interests.

Find a new hobby

Find a hobby that gets you excited to partake in it. You might want to start the hobby before you stop working as this will give you time to explore different alternatives and it will allow you to start your hobby on day one of your retirement. You don’t need to take up just one hobby. You may find lots of new interests during retirement, now that you have more time to focus on what you enjoy. A few examples of popular hobbies are arts and crafts, gardening, Sudoku, or walking etc.

Travel

Allow yourself to be open to new experiences, cultures and ways of living by travelling. Visit new countries, or stay at home and get to know places better that are right on your doorstep. Some people have a passion for travel and will want to spend their retirement travelling the world. Make sure you consider the costs and work it into your retirement plan when you are putting your finances in order.

Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

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