Retirement: Know What You Are Planning For

Planning for retirement begins almost the day we begin to work and never really ends.  It’s a stage of life that most (not everyone of course) look forward to, but it also creates a fear in many that they will outlive their savings.  Bucket lists, travel dreams and unfinished hobbies all compete for attention as that golden age nears and thoughts being to turn from having a reason to get up every day, to making a reason to get up.  It can be an overwhelming time for many, but knowing what retirement has in store for you and the stages you will encounter – is all part of the planning process.

In the past, the different stages of retirement could be broken down into 3 stages, we will touch on these, but the focus will be on a “new” stage on the retirement cycle. This stage adds a whole new dimension to what is needed from you with regards to both your “time”, as well as your budget. This stage is now referred to as The Family Support Stage and we will explore why it should also be seriously considered when planning for the future.

Early years of retirement tend to be very “Active”

The first stage that we list after retirement is referred to as the Active Stage. These are the first few years after retirement where you get to travel and see the world, well in some cases, just a bit of Australia, but hey, it’s better than nothing. You also have the time available to you to get involved in activities which you never had the time for while working, such as line dancing. You suddenly have 50-60 hours of more free time in a week and the added bonus is that you are generally still healthy and willing enough to make the most of them.

Still Active but the years become a little more “Passive”

The second stage is known as the Passive Stage. This is a time when you still enjoy a lot of travel and of course, all of the activities you have become involved in, but with the onset of age-related injuries and occasionally illness, there comes a time when you do start winding down your involvement and enjoy more quiet time. Your trips become shorter and you find yourself wanting to spend more quality time at home.

From Passive to “Sedentary”

The final stage on the retirement journey is known as the Sedentary Stage. This is when a person can start to suffer physical or mental limitations. It can also be a time of setbacks such as the loss of close friends, a spouse and family. These emotional and physical setbacks will lead to a more sedentary, home-based lifestyle when your dependency on others increases with the decline of your independence.

Experts have now recognised a new stage which has entered into the lives of many retirees. It is a stage that happens between the “just retired” and first stage and a stage that has to be managed very carefully.

The Family Support Stage.

This has become a stage where more and more newly retired people are finding themselves as full-time, yet unemployed, carers for their grandchildren. This of course cuts into any travel plans or personal plans for after retirement and is usually agreed to, to aid struggling children. We are not talking about a one-day-a-week visit to granny and gramps, but a full week commitment. Often it is not just the time that is required from the grandparents, but also the costs involved too. This is where the question of planning for a modern retirement comes in.

Would you like to sit down and discuss your modern retirement plan, one to one?