Plan for Your Retirement in Your 50s

With your 60s on the horizon, you’re no doubt already looking forward to your retirement. But even as you start thinking about what you can do when you finally have all that free time to yourself and your spouse, don’t forget that none of this would be possible if you’re not making all the right plans, right now.

Don’t Underestimate Your Retirement Funds

It’s always best to prepared. If you retire when you’re 65 years old, for example, that means you could spend 25 years or more in retirement. Immediately, most people would start calculating how much they would need for a quarter of a century, but that doesn’t take into account factors like the rising cost of living and your ongoing healthcare needs. All this also depends on when exactly you retire. 65 is an average age, but if you plan to take it easy the moment you hit 60, you should be sure you have enough set aside.

Settle Your Debts

Whether it’s home payments or loans you had taken out for your kids’ studies, you don’t want to be saddled with outstanding debts in retirement. With these settled, you will have more freedom – personally and financially – to travel and spend more time friends and family. You could start by paying a little extra every month to pay off loans faster, and possibly with less interest. Check with your bank to see if there’s anything else that you can do.

Prioritising Your Needs

The easiest way to begin planning for retirement is to start by setting priorities. Naturally, the first things to focus on are all your basic, ongoing needs – your food, the monthly bills, your medication, transportation and other essentials for day-to-day life. Once these are settled, you can rest a little easier and focus on the more fun stuff.

Beyond the Basics

New hobbies and holidays obviously would cost you a fair bit, so it’s best not to tap into your main retirement fund for these. Lots of retirees take on part-time work – simple jobs like data entry or clerical services – for additional cash, as well as a means to keep themselves occupied. Consider what kind of activities you would like to indulge in and plan accordingly.

Factoring in the Unexpected

On top of all of this, remember that you can’t completely account for every single detail of your retirement, no matter how much you try. Anything can happen in the years to come. You would probably already have insurance policies in place for yourself and your spouse, but just to be safe, speak with your agents to make sure that they’re still relevant for your needs in your 60s and beyond.

Retirement should be the best time of your life. The kids have started their own families, you can leave your work behind, and you have the world ahead of you, waiting to be explored. You have a few years left to plan for it, so while you can, make it count.

References

  1. https://www.wellsfargo.com/goals-retirement/50s/

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