What would you like to do when you get to retirement age?
Most people think about retirement as something that there are able to do when they have enough money. The first thing though you really need to think about is what do I want to do in retirement?
Most people I talk to under estimate what they would do in their retirement. We all know about the advances in medicine and how this has increased life expectancy, this also means we need more money.
It is not the same for everybody. Some of us want funds to just to be able to carry on our current standard of living. Others have big plans for retirement and intend to do a lot of travelling which will generally be more expensive than their current standard living.
The early years of retirement tend to be the most expensive as the majority of us look forward to retirement when we are fit and healthy. Suddenly all this free time that we have we look to find ways of filling. If you only work part time or have given up work completely in retirement then suddenly you can find an extra 40 hours a week to fill (or more!) all of which will cost money.
Before you even start thinking about how much money you need in retirement have a real think about what you would like to do. Once you have done this you can then have a realistic view on what income you need. If you know what you want you are more likely to achieve it.
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Posted in Investing your money, Retirement and beyond |