Retirement is a very different phase in the life of a person and it includes its own peculiarities.
During your working life and well before retirement, you’ve become used to a regular income. The normal income comes in the form of salary or commission paid periodically at least monthly.
The regularity of your income over the years could have made you to accommodate your spending to fit into your income patterns. Therefore, when it’s time to retire you already have your spending pattern well practiced, though it may change a bit in retirement.
Living comfortably in retirement is supposed to be the dream of everyone. After the opportunity to retire comes the greatest question you have to ask yourself is this, will you have enough income to keep the lifestyle you had before retirement?
This will be based on the lifestyle that you want to maintain and the sort of income you will have from the pension scheme. But in most cases the income from the pension scheme will not be enough to live the life span of your dream in your golden age.
When you think of retirement you need to ask yourself the following questions: What lifestyle will you need during retirement? What is your current financial situation?
3. How will your financial situation change at retirement?
4. How can you control your financial future to be able to retire with the resources needed to achieve your desires lifestyle?
As you think about retirement days you’re supposed to think of how you will want to live in retirement. In the light of this you may need to consider the following:
1. Your home: where will you live? Will you remain where you are, or move to another part of the state or nation?
2. Transportation: what is the price to you now? Are you going to move in retirement, how much can you spend to and from work today.
3. Food: Maybe while you are working you eat lunch outside all workdays. Calculate how much you spend a year on lunches and other meals at work.
4. Clothing: Can you buy fabric to impress while in retirement? How much of Aso-ebi were you buying while working, will the trend continue in retirement?
5. Health and Medical Expenses: With age come all type of ailments naturally related to ageing, how prepared are you for the expenses related to this?
6. Entertainment: Will you spend more or less on visiting parties and social gatherings.
7. Recreation: Will you spend more money on leisure, such as golfing, tennis, squash and polo.
8. Travel: Throughout retirement will your traveling increase.
Look at the eight points really well, the tendency is there for one to invest more in some categories. You’re likely to spend more on health and medical, also because you have more time you may spend more on travel, entertainment and leisure activities.