The drift of the post-war "baby-boomers" into retirement is under way. Are you ready for retirement?
Many of my retired clients tell me there is no such thing as "retirement". Their definition of retirement is more that they have just ceased receiving a regular wage or salary. They are busier than ever, either working part-time, volunteering or just helping friends and neighbours with gardening, hobbies, bowls, etc.
It is easy for those in our industry to give advice on financial matters leading up to retirement, but many persons entering retirement need a lot more help than financial to adjust. It has a great deal to do with forming a routine and focusing on goals.
It can often take up to two or three years after ceasing regular employment before a person can adjust to new routines.
Many persons go on extended holidays very soon after retirement. Others find it better to wait a while and adjust before holidaying. Either way, the space between the first and the next holiday needs to be filled with structured activity, rather than sitting around waiting for things to happen.
An Australian former teacher, Eva Bennett, has written a book, So what do we do now?
which is a guide for baby-boomers to enjoy retirement. Her message is presented in five segments: focus, fitness, finance, freedom and fun. According to Mrs Bennett, fitness is a vital ingredient for cooking up a great life in retirement. She advocates a daily 2km walk. Also, mental fitness and social interaction are beneficial for your wellbeing. Apparently 80% of health problems can be attributed to constant worry and negative thinking. People who are organised and keep a relative degree of fitness seem to live longer.
Freedom comes from arranging your retirement routine before you retire, so that retirement is not such a great wrench.
This is freedom to move around the country, go on holidays and perhaps move to warmer climates or nearer to family and friends by not being tied to employment.
The fun part comes by maintaining regular social contact and having a mix of activities.
In my experience, many persons worry about their retirement funds unjustifiably.
As I have said before in these columns, it is my belief the New Zealand superannuation is about $150 a week short for a married couple to live satisfactorily. I am not advocating an increase in the pension, but rather that you need to prepare better for retirement.
It is not a sin to spend capital.
Many persons approaching retirement worry they will not have enough capital. If you cannot work out your requirements, seek advice. The Sorted website is very good.
So it is not all financial requirements when it comes to retirement, but if you have saved satisfactorily during your working life you can enjoy retirement with less stress and perhaps live longer.
(The writer acknowledges an article by Eva Bennett in the February edition of Rotary Downunder magazine for the background to this piece.)
- Peter Smith is an authorised financial adviser, a certified financial planner and is the principal of Kepler Group Otago Ltd, Dunedin. Email: pete@keplergroup.co.nz . A disclosure statement is available on request and free of charge.
