Funding your retirement lifestyle

The time has finally come for you to enjoy your well-deserved retirement, but before you close the curtain on your career, there are a few things worth considering before you officially enter your golden years. In this day and age, financial security is the key to making the most of your retirement lifestyle.

Here are some tips that may come in handy as you prepare to fund your retirement.*

Create your ‘Retirement Plan’

Before embarking on your retirement journey, it’s crucial to develop a comprehensive retirement plan. This can mean assessing your current financial situation, including savings, investments, and any existing retirement accounts. You could also consider seeking help from a financial advisor who can provide you with some insight into your specific needs and goals, and the potential risks.

Diversify Your Investments

If you have a retirement portfolio, it may be worth considering diversification by spreading your investments across various asset classes to reduce any risk. This might include a mix of stocks, bonds, real estate, and other investment vehicles. A diversified portfolio can help safeguard your assets against market fluctuations and also provide a steady income stream.

Consider downsizing

As you transition into retirement, you’ll probably want to consider downsizing to a smaller home or unit so you can free up your equity and reduce your living expenses. It may even be worth considering a retirement living village, where you can truly enjoy the ‘lock up and leave’ lifestyle.  This will not only help you cut down your expenses, but also allows you to declutter and simplify your lifestyle. Read more about transitioning to a retirement living village here .

Take up a side hustle

Retirement doesn’t necessarily mean complete withdrawal from the workforce. Many retirees find fulfilment in doing some part-time work, and many people (including those who work full-time) have reaped the financial benefits of finding a ‘side hustle’ where they can earn some extra money doing what they enjoy. Not only can you earn an additional income but it can also keep you engaged and socially connected.

Set yourself a budget

Creating a realistic budget that aligns with your retirement goals can help ease the woes that can creep in when you adjust to your new lifestyle. Consider factors such as healthcare expenses, travel plans and leisure activities. Regularly review and adjust your budget to accommodate changes in your lifestyle or unexpected expenses.

Consider healthcare costs

Factor in healthcare costs when planning your retirement. Medical expenses can take up a considerable portion of your budget, so explore health insurance options and consider setting aside funds for any unexpected healthcare costs.

*The tips in this article are for general information only. You should consider seeking independent legal, financial, taxation or other advice that relates to your individual circumstances.