| Retirement planning is often mistaken as a purely | | | | measurable benchmark for success and help you to |
| financial activity. Life is about more than money; | | | | monitor that benchmark.c) Needs analysis |
| retirement is no different. What the terms 'success' | | | | It is one thing to plan for success and another thing |
| and 'retirement' denote to you is inherently | | | | to hope for it. Financial comfort during retirement is |
| subjective. Someone who defines success in financial | | | | important. Even though you cannot predict your |
| terms will have different retirement priorities as well. | | | | future, you can anticipate it and help to shape it. A |
| When planning for a successful retirement, it is | | | | proper financial needs analysis would help you |
| important to address four basic aspects of it- | | | | determine how much you need to save for |
| regardless of how you prioritize them. Failing to | | | | retirement and what you need to in the present to |
| address retirement needs comprehensively will lead | | | | have retirement comfort.d) Using dedicated |
| to discontent- a term that is not often associated | | | | retirement plans |
| with success. The four main considerations (not | | | | Employer's savings plans, individual pension plans, |
| necessarily in order of priority) for a successful | | | | annuities and dedicated investments should form part |
| retirement are:i) Lifestyleii) Financesiii) Health and | | | | of your retirement plan. It is important to have plans |
| fitnessiv) Social and psychological concernsi) Lifestyle | | | | set aside for no purpose other than retirement and |
| Before planning, you must dream about your | | | | you should use these to accumulate the amount that |
| retirement; picture what you want your retirement | | | | you believe you need for retirement comfort. It is |
| to be like. To have a successful retirement, you must | | | | necessary to place emphasis on capital growth within |
| fully understand what retirement success means to | | | | your portfolio.iii) Health and Fitness |
| you. You must first understand what your priorities | | | | Your health is your wealth- especially in retirement. |
| are. | | | | You do not want to have medical bills draining your |
| Are you most concerned about social involvement, | | | | retirement fund or ailments preventing you from |
| finances or fitness? | | | | enjoying retirement itself. Prevention is better than |
| Would you like to live in the same area or consider | | | | cure. You should ensure that you do what you can |
| moving after retiring? | | | | to remain healthy or mitigate existing medical |
| How do you plan to stay socially and physically active | | | | complaints. |
| after retirement? | | | | Protecting your health for retirement starts at |
| Do you want to maintain your current lifestyle, live a | | | | whatever point in your life you are at- whether you |
| frugal life or an extravagant one after retirement?ii) | | | | are in your 20s or 50s. It involves healthy living and |
| Financial considerations | | | | safeguarding your finances from depletion from |
| Financial considerations are not the one-stop shop for | | | | medical and health expenses. After all, you need to |
| retirement success. However, you should accord | | | | protect your assets during retirement. Your greatest |
| them priority because financial worries and stress | | | | asset is you.iv) Social and psychological well-being |
| create unhappiness. According to Maslow's hierarchy | | | | You must know how you are going to cope with the |
| of needs, a person seeks to satisfy basic needs | | | | change of working part-time or not at all. Staying |
| before addressing higher-order needs. Financial healthy | | | | socially connected and mentally alert will improve your |
| is a basic need in the modern economy and is one of | | | | enjoyment of retirement. You cannot have a |
| the pillars of a successful retirement. Financial planning | | | | successful retirement if you are unhappy for any |
| for retirement entails the following:a) Debt reduction/ | | | | reason. Having realistic expectations of retirement |
| elimination | | | | can help you to cope with its reality and anticipate |
| Debt is an obligation that fetters your financial | | | | them properly. |
| freedom. During retirement, debt is a handicap. You | | | | Successful retirement require you to define it first. |
| must plan to eliminate/ significantly reduce debt by or | | | | Once you consider all aspects of retirement in so |
| around the time that your retire.b) Set financial goals | | | | doing, you are likely not to have a devastating reality |
| for retirement | | | | check. Whether you achieve your idea of a |
| Do you know how much income you want during | | | | successful retirement is up to you. More importantly, |
| retirement or how much you will need to finance | | | | your idea of retirement should be realistic and |
| your desired retirement lifestyle? Success is about | | | | achievable. |
| getting what you want. Goals help you to set a | | | | |