| What does retirement mean to you? Sitting on your | | | | with your spouse, do the following exercise |
| porch, rocking and drinking a lemonade, watching the | | | | separately. Remember, brainstorming means writing |
| world go buy? Or do you want an active retirement, | | | | down whatever comes to mind. There are no right |
| still engaged in the world, travelling, starting a | | | | or wrong answers. Don't spend too much time |
| business, and spending time doing what you really | | | | thinking about your answers, just right them down. |
| want to do? Are you thinking of retiring early? Are | | | | 1. If you received a pension that paid your monthly |
| you thinking of retiring now? | | | | expenses, what would you do with your time? |
| With increasing life expectancies and improving health | | | | 2. How would you spend a $100,000,000 lottery |
| and an increase in planning, the nature of retirement | | | | prize? |
| is changing ... for the better. So, how do you make | | | | 3. Your doctor tells you that you will live to 100 and |
| sure that when it comes time to retire, you'll be able | | | | be healthy both mentally and physically. You will have |
| to enjoy the lifestyle that you'll want to lead? The | | | | to gradually reduce your physical activity from age |
| answer is effective goal setting and planning for | | | | 90. What will you do with your time? |
| those specific goals. | | | | 4. Your doctor informs you that you will die painlessly |
| While once retirement was seen as the culmination of | | | | at age 65. Until that time you will feel healthy. How |
| one's working life, today retirement is increasingly | | | | will you spend your time until then? |
| viewed more as a life transition. Retiring "early" | | | | When you've answered these questions, review your |
| (usually defined as before eligible for Social Security) | | | | answers. Did you find any surprises? Circle your top 3 |
| means you are still young and healthy, able to pursue | | | | answers and move onto Step 2. |
| hobbies, business interests, and travel. | | | | Step 2: Set results |
| Today, people in their 60s are generally healthier than | | | | Next, think about why you want to that particular |
| past generations and this will only increase further as | | | | goal? What are the results or objectives that you |
| we live healthier lifestyles and benefit from advances | | | | want to achieve for those goals? What is your vision |
| in medicine. Life expectancies are also increasing. In | | | | for that goal? |
| 1935, a 65 year old could expect to reach age 77 | | | | For example, if you want to spend more time with |
| ½ . Today, a 65 year old can expect to live to | | | | family and friends, is it to spend quality time with |
| 82 ½ . And, 10 percent of 65 year olds will | | | | grandchildren, holiday with friends or support a less |
| reach the ripe old age of 98! In the years to come, | | | | healthy family member? What would you get out of |
| we can expect this to increase further. | | | | spending that time with your grandchildren? Sounds |
| How will you plan for decades of post-employment | | | | obvious, but write it down. |
| life? | | | | This is your motivation. When you decide to save an |
| How Do You Define Retirement? | | | | extra $300 per month for retirement, a theoretical |
| Traditionally, retirement has been seen as the time | | | | "retirement" goal is not motivating. However, a vision |
| when a person leaves the workforce to be | | | | of playing with your grandchildren all summer at the |
| supported by a pension, Social Security, and/or other | | | | lake house is just the motivation you may need to |
| personal assets. However, this typical view of | | | | make a small sacrifice now to reach your ultimate |
| retirement is quickly changing as more and more | | | | goal. |
| people are retiring from "employment" to eagerly | | | | Step 3: Specify |
| pursue other activities including:o Starting a business | | | | Specify a dollar amount and time frame for your |
| or working from home.o Working part-time or in | | | | goals. You may not know exactly how much your |
| rewarding, but low paid, jobs (such as teaching).o | | | | goal would cost - but you must specify a reasonable |
| Volunteering.o Managing investments (rental | | | | guesstimate so you can create a effective plan. If |
| properties or investment portfolios).o Engaging in a | | | | you need more assistance, contact your financial |
| hobby.o Caring for family memberso Travelling or | | | | planner or advisor. |
| moving to a vacation area. | | | | When specifying your goal, you may think of |
| Today, retirement is viewed as a time for looking | | | | retirement as having multiple stages: |
| forward rather than lamenting the end of a career. | | | | 1. Lower or more unpredictable income including part |
| Even more so, many people are leaving employment | | | | time work, starting a business or managing |
| joyfully to pursue their true interests and goals. But | | | | investments. |
| while retirement is now seen as an exciting transition, | | | | 2. Active but not earning an income, such as working |
| it's going to take proper planning in order to make | | | | on hobbies, travelling, volunteering or spending quality |
| the most of it. And an important step in planning for | | | | time with family. |
| retirement is setting goals. | | | | 3. Reduced activity, because of health issues or |
| Why Should I Set Specific Retirement Goals? | | | | reduce mobility. |
| Setting retirement goals is vitally important. Defining | | | | You may also think of retirement as multiple goals, |
| your goals will allow you to:o Plan for your retirement | | | | each with their own time frame and monetary |
| more realistically and effectively.o Be more motivated | | | | requirements: |
| to achieve your goals. For example, you'll know how | | | | 1. Providing for basic necessities and medical |
| much you'll need to budget and save now for your | | | | insurance. |
| goal.o Make a smooth transition from full time work | | | | 2. Provide for potential long-term care needs. |
| to your retirement life.o Meet your retirement goals | | | | 3. Providing for greater, more luxurious lifestyle. |
| because you'll have a clear idea of what you need to | | | | 4. Travel. |
| do and how you will achieve those goals. | | | | 5. Purchasing and maintaining a vacation home or |
| How Do I Set Retirement Goals? | | | | time-share. |
| Setting your retirement goals is much more simple | | | | Why Are You Waiting? |
| than you may imagine. You already know what you | | | | Why are you waiting to start the life your really |
| want to do - we just need to bring that information | | | | want? The first step is specifying your goals and |
| out of you. Spend some time thinking about what it | | | | creating a plan. Even if your goals make take years, |
| is you want out of retirement and follow this simple | | | | or decades, to fully realize, you can being to life that |
| exercise. | | | | life now. Take time for your hobbies, join |
| Step 1: Brainstorming your ideas | | | | organizations involved in your interests, and spend |
| Spend 15 minutes brainstorming answers to the | | | | time with family now. Retirement is not an age - it is |
| following questions. If you are planning for retirement | | | | a state of mind. |