Retirement can feel like an entirely financial transaction, especially as that’s the way we often talk about it.
You’ve probably spent your entire life working, saving, and investing to prepare yourself for a time when you’ll have the freedom to do all the things you’ve planned.
But actually, your retirement is about a lot more than money.
Of course, your savings play an integral part in living the kind of retirement lifestyle you want. It’s the vehicle that drives you towards your goals.
So, while money is important, you should give some contemplation to the emotional aspects of those changes. It’s about more than just your money.
Keeping on an even keel
Whether you’re planning on retiring soon, or you’re already enjoying your new post-work lifestyle, retirement is an emotional time. That’s why it’s important to manage your feelings throughout and do your best to take it one day at a time.
This is easier said than done; it’s a big life change and some things may take some getting used to.
For example, you may have woken up for work at the same time every day, bought a coffee from your favourite café during your commute, and looked forward to socialising with your colleagues. But now, your routine will be entirely different to the one you’ve lived for the past 40 years.
Prepare yourself for this change and the emotions that may come with it. It’s perfectly normal to feel like something is different, or perhaps even missing. The key is to not allow those feelings of trepidation to spoil your hard-earned rest.
Choosing the kind of lifestyle you want
Your entire retirement plan essentially depends on what you want to do. And, while your money is how you do it, the lifestyle you want to live is the real goal, rather than a figure in pounds and pence.
The first part of this is working out when you want to retire if you haven’t already. You need to know how long you’ll have to live the life you want, and also how long you’ll need to be able to support yourself.
Once you know when you want to retire, you need to figure out your specific goals. Do you want to go on a cruise around the world? Or would you rather spend time at home with your grandchildren?
While money does influence them, these are all essentially emotional decisions, rather than financial ones. These choices revolve around the things you want, rather than the pragmatism of how much you have.
It can be easier to reach these targets if you’ve spent many years working with a planner who’s made a tailored plan with your goals in mind.
Remember: it’s not a sprint, it’s a marathon. Even if you’re approaching or already in retirement, it’s never too late to seek help.
Figuring out where you want to live
Alongside choosing a lifestyle, you need to decide where you’re going to live.
Again, this may appear an entirely financial decision: you have a budget, a home you want has a value, and it’s a simple transaction.
However, consider the emotional side of moving. You might have lived in your home for a long time, perhaps it is even where you raised your children. And, even though it’s logical to move to a smaller home with lower management costs, you might find that actually that’s not something you want to do.
Or perhaps you always saw your home as a key part of your estate plan, and you want to pass it on to your children or grandchildren.
These considerations matter just as much as your money. Build them in as part of your retirement plan.
Thinking about your legacy
As part of your retirement plan, you should have a think about what you want your legacy to be for your family.
Retirement can be a tricky balance between enjoying yourself without running out of money, while also securing your wealth for the next generation. You should make a savings plan that includes money you want to set aside for your family. You should also have a comprehensive will, complete with instructions for what you want to happen to your money when you’re no longer around.
Naturally, this kind of estate planning comes with plenty of emotional decisions. This could be difficult choices, such as what happens if you or your partner ever need long-term care, or making provisions for if one of you passes away before the other.
This can be one of the most complex areas, as well as one of the most emotional. Finding an expert to help can make this a lot easier.
Working with a financial planner
Retirement isn’t all about money, but ultimately your finances still play a key role in allowing you to live the kind of life you want. That’s why you need to put your money and your goals to work together, pulling in the same direction.
If you need help working out how much is going to be “enough” for you to live the life you want, you should work with a financial planner.
A planner should be talking to you about your life first, taking your goals into account. After that, they should be helping you with strategies that use your money to support your ambitions.
Speak to us
At Cordiner Wealth, we can do exactly that. We’ll support you through your retirement, creating a bespoke, personalised plan that puts your money to work in the most effective way possible.
We’ll also support you through the emotional side of your retirement, guiding you through the process and staying you with every step of the way.
If you’d like to find out more about what we could do for you, please get in touch. Email email@example.com or call 0113 262 1242 to speak to one of our experienced advisers.
This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.