Finding balance in your retirement planning goes beyond having a diversified portfolio or a monthly income number to match your projected budgets. After all, you’re probably not going to spend your entire retirement watching every penny come in and go out.
Yes, planning financially for retirement is crucial. However, planning for quality of life during retirement is an important aspect of retirement planning that is often overlooked.
As Americans prepare to live longer during retirement than previous generations did, you need to consider how the shift toward a longer life expectancy impacts your retirement as a whole. Are you planning for a quality retirement alongside the quantity of retirement savings you’d like to have in place?
Quality of life conversations contribute to the financial projection for retirement, since the type of retirement lifestyle you plan on is an essential aspect of the retirement budget. But beyond your weekly tee times or macrame classes, what are some other quality of life issues to focus on in retirement planning?
Your retirement location contributes to many of the financial factors of your retirement plan. From tax rates to cost of living, you will need to factor in the cost of where you plan to retire.
If you don’t already live in the city or state to which you plan to retire, consider how a move will impact your financial situation. If you move sooner, are there benefits to be gained? How will a house sale factor into your financial plans, present and future?
Your financial advisor can provide insight into how these factors will contribute to your retirement planning and can provide advice on timing these steps.
You’ve probably heard that having a solid support network of friends and family can make all the difference during your retirement years. And research supports the idea that individuals in community tend to live longer, happier lives than those who are isolated.
If you want to enjoy the quality of life associated with being in a community of people you care about, it’s time to start making those connections now. If you want to maintain close relationships with your siblings, children, and/or grandchildren, make it a point to foster those relationships right now.
For other connections, look into hobby groups, charitable organizations, and community groups that focus on something you care about and would like to make time for during your retirement years. For example, if you enjoy crafting and would like to spend your retirement making quilts for the homeless, try to find crafting groups or classes that will help you to hone your skills and meet others that share common goals.
While longer life expectancy is good news for everyone, it’s important to consider how your health might fare during your extended retirement years. If you’re dealing with health issues, the quality of these extra years may not be as high as you’d like.
Of course, you certainly can’t look into a crystal ball and predict exactly what your health will do as you age, but there are steps that you can take now to improve your odds moving forward. For starters, you can work to prioritize your health now so that making healthy choices becomes habit.
Look into ways that you can adjust your diet or lifestyle to combat the likelihood of developing chronic conditions. And consider insurance options that will support your healthcare needs, should you require long-term care or care for a unique situation.