Planing to retire? Do not focus on money

Money is not everything when you are making the decision to retire. I am not thinking wealth is not necessary, it is. Making a decision to retire is more than just counting your pennies. Talk to financial advisor about your retirement and they will, I bet, concentrate on how much money do you have or how much should you save, to maintain the lifestyle you currently have today. 

If you talk to the experts or read them, you will come across many different rules of thumb, such as these:

Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. 
The Multiply by 25 Rule estimates how much money you'll need in retirement by multiplying your desired annual income by 25. For example, if you want to withdraw $40,000 per year from your retirement portfolio, you need $1 million dollars in your retirement portfolio. ($40,000 x 25 equals $1 million.) If you want to withdraw $50,000 per year, you need $1.25 million. To withdraw $60,000 per year, you need $1.5 million.
Age rule: As you get older so you should invest more conservatively based on the “Age Rule”. This rule states that you should invest 100 minus your age in stocks. Since I am are age 72, I should have 28% in stocks and 72% in bonds.

These calculations do not, in Canada, include Canada Pension Plan Income or Old Age Security Income, which while not sizeable could amount to over $1100 a month for an individual or $2200 a month for a couple. 

In addition what the experts don't add, or if they do it is added as a parenthesis is: Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement and how long you think you will live.

We don't know how long we will live, but we do know what lifestyle we hope to have when we retire or do we. Retirement is probably the greatest life change you will ever undergo, make sure you prepare and are set both financially and emotionally, one without the other just won’t work. 

The most important aspect of your retirement that you need to plan for is your lifestyle. Life in retirement is about reinventing yourself, establishing who you are and what you love to do, and being positive.

We know there are three stages of retirement, so take time out to think about what it is you really want to do as well as what you don't want to do, particularly in the first stage of retirement. Without creating a plan you could drift and things that you did not plan or want may happen. You do not want to waste time not doing the stuff you really do not want to do.

In retirement, it is important to fill your life with something that is purposeful.  Retirement gives you an opportunity to enjoy more freedom, but and I speak from experience, 24/7 fun can get a little tiresome. I believe we need more purpose in life than just leisure.