Retiring this year? Some things to do

Retirement for most of us does not sneak up on us. We have a pretty good idea of when we want to can or could retire. In my case, I did not plan. I made a snap decision and retired suddenly. Don’t do that. Planning for your retirement can never start too early and if it’s closer than you realize, you may need to set aside some time now to make sure everything is in order.

Retirement is a big life event; we have worked for years and many of us are looking forward to retirement (some for decades). It is the stage in life for people to take a step back from working life, relax, and spend their time doing what they enjoy most. However, the reality of retirement can often be rather different from these visions of stress-free, later-life fun.

Some issues that many seniors face are loneliness, lack of mobility, and boredom. These, for some, lead to depression in later life. However, with the current cost-of-living crisis and alarming increase in energy bills, many people, and preparing for retirement, are facing significant financial stress that may contribute to their overall well-being and mental health.

To help people prepare for retirement, here are some tips for addressing common issues in retirement.

1. Review your retirement funds

First, consider the massive expenses you are likely to make throughout retirement based on your goals. This could be anything from a bucket-list travel destination to supporting a loved one in buying their first home. Make sure you have also accounted for a reasonable emergency savings pot.

Next, take the approximate amount needed for these big expenses and emergency funds away from your pension (unless you have saved for them separately). From there, work out what your average yearly budget should look like. Be realistic about your expected outgoings and the expenses you can’t cut down on.

2. Evaluate your current lifestyle

If after reviewing your finances you are concerned your pension pot won’t stretch to your needs, or you simply would like to prepare for the continued cost-of-living crisis, then evaluate your current outgoings and where you may cut back.

This could involve changing your day-to-day routine, such as scaling back on the weekly food shop, opting for public transport more frequently, or even swapping your current car for a more cost-efficient model. A typical solution for pensioners is to downsize their homes.

3. Make a retirement plan

Make a reliable retirement plan, mapping out your days, weeks, and even years with goals and activities that will bring you fulfilment.

Start by thinking about your long-term goals, such as places you want to travel to or learning a new skill. Then, consider what day-to-day activities you enjoy doing, such as visiting friends, as well as tasks you want to tick off your to-do list. This could include anything from giving your garden a makeover to clearing out some old items from the loft.

By writing these goals, activities, and tasks, you can create daily or weekly plans that ensure you are regularly occupying yourself.

4. Establish expectations and set boundaries

Whether it’s taking on childcare duties or running errands for friends, there is often pressure put on people in retirement to spend their newly found free time on other people.

While you may be happy to spend your time in this way, it is important that you do not take on more than you feel you can, or simply want to. Although it's challenging, it is important to set boundaries with your loved ones about how much time and money you can provide throughout your retirement.

5. Expand your social circle

A recent study by Age UK revealed that 1.4 million older people are lonely in England, with the impact of the pandemic, poor health and well-being, and income being cited as major factors contributing to this.

First off, ensure you are budgeting enough each week for socializing. This doesn’t need to be a major expense, especially if you’re happy to host people at your own home, but accounting for it within your budget will help you make it a priority.