A lot is written about planning for retirement. Typically though, it all revolves around financial savings. This is perfectly sensible, as strong savings are the basis for a stable retirement. But the discussion about how to retire happily should be about more than just the money involved. In service of this idea, we are going to go over some of what it takes to set up a happy and fulfilling retirement beginning with the finances, but also touching on some other ways to set up your life after work.
Saving for Retirement
It does begin with savings, and the first and most important step in this category is to figure out how much you will need to retire comfortably. Determining your retirement budget will depend on a number of factors: your job, whether you are saving via an RRSP or other methods, how old you are and when you are aiming to retire, and so on. But it is a good idea to figure all of this out as quickly as possible, and there are a number of different tools and tactics available to help you turn your information into a concrete set of numbers.
Once you have your numbers, it is important to start saving as quickly as possible. As you have likely heard, the benefit to long-term retirement savings through arrangements like RRSPs is compounding interest, and the sooner you start the better you are able to take advantage of this. As an add-on to that point, we would also suggest that part of your plan be to avoid withdrawing funds from your retirement savings if at all possible. While this is certainly an option you can consider if a need arises, it carries some unfortunate penalties. The RRSP withdrawal tax can be burdensome, and on top of that, drawing money out of the account means that you stop that money from compounding further, such that even if you eventually put more savings into the account you will be partially starting over, in a sense.
Managing You Health
The only thing more important than making sure you have the financial standing to retire as you would like to is ensuring that you are also healthy enough to enjoy a comfortable retirement. Of course different health complications can arise as we grow older, and there are many potential issues that we can not plan for or prevent. But to the extent possible, you should make managing your health part of the process of planning for a healthy retirement.
Fortunately, this is not particularly complicated! It just takes some discipline, and an ability to form good habits over a long period of time. But it is never too early to start. You will want to establish a sustainable diet of good, healthy food that you enjoy and are comfortable accessing and/or preparing regularly. You will want to learn to watch your weight particularly given how much easier it gets to pack on unwanted weight with age. And you’ll want to figure out ways to exercise that you can stick with as you grow older whether that means establishing a routine of walks, learning to play tennis, or anything else that might appeal.
Altogether, these simple strategies and habits should set you up for good health and reliable energy into your retirement.
Decide Where You will Live
Conversations about retirement revolve so much around money that people often forget about the idea of deciding where to retire. And for some, there is really not much of a conversation to be had in this regard. It may be that you would be perfectly happy settling down where you already live, and in that case all you need to do is give some thought to whether you a ae going to transition to a new home, apartment, or living community. But if you are open to other options, you should spend time considering them.
Is there a climate you might prefer, or which might be easier for you as you age? Is there a place you might move so as to be closer to family or good friends? Might there be a place you have always dreamed of living that you would like to get a feel for in retirement even if only for the first few years? These are all important questions, and going over them carefully can help you to figure out the perfect place (or places) to spend your retirement.
Decide What You Want to Do
It is tempting almost amusing, even to think of your retirement as a time when you will simply kick back and relax. You might imagine sitting outside your home reading novels with a cold beverage beside you, enjoying mornings out on a boat on a lake, or any number of other idyllic retirement scenes. And if these are the things you are looking forward to, you should absolutely make sure you are able to enjoy them! But many retirees will tell you that they also found themselves in need of new challenges and ventures also, after giving up work.
This does not mean you need a new nine-to-five job. But there are plenty of ways to keep yourself busy. There are popular post-retirement jobs like consulting, running a store, or teaching, for instance, that you might be able to do on a part-time basis if you would still like to be doing something productive. Similarly, you could sink yourself into an intensive hobby, or pursue a major project you have always thought about (like finally writing that novel bouncing around your head!). But whatever your specific solution may be, you should give some thought to the different ways in which you will keep yourself busy in retirement.
After all of these considerations, retirement planning mostly just comes down to the little things. As you go through it all though, do remember to keep your future happiness at the forefront of your thinking. The financial side of retirement planning is of course crucial, and sets a foundation for all the res. But a more comprehensive focus on achieving a happy retirement will serve you well in the long run.