Making the transition into retirement may be exciting, but it can also make you apprehensive – especially when you haven’t decided how you’re going to spend your golden years. One of the most important decisions that you can make concerning your retirement will be where you’ll live since so much of your lifestyle will be determined by this one decision.
1. Create a Budget
The first step to creating a budget for your retirement will be to calculate everything that will make up your income when the time comes. This will include any income you will receive from government or employment pension plans.
You’ll also want to factor in your retirement savings and investment income. You will probably also need to consider the money you’ll earn by liquidating any assets you’ll no longer require, like that second vehicle or the house you currently own.
While people generally regard a withdrawal rate of 4% per year as the amount you should be living off during your retirement, it can help to talk to your financial planner to get a more accurate assessment of your situation.
2. Creating Your Retirement Dream Home
While you might have planned for years to achieve a specific budget regarding your retirement living space, that doesn’t mean that you’ll be left with only one option. You may have a set amount of money you will live on, but how you spend that money will be up to you.
You will likely sell the house you’re living in now to put some of that money towards your retirement living expenses, but that doesn’t mean you’ll have to rent during your retirement. You may want to move into a custom home where you’ll be able to gain more control over the design and features of your new home.
3. Consider Leisure and Active Living
Even if you enjoy your career, you shouldn’t be afraid of the free time you’ll be afforded when you retire. It may take a bit of getting used to, but your retirement will provide you with the leisure time to pursue pastimes that you like.
That said, if you’re concerned about how you’ll fill your time, then it helps to plan on living in a community that offers a wide variety of social and physical activities. When you move to an active adult living community, like assisted living in Illawong, you’ll get the chance to meet new people who also enjoy organized community activities.
4. Create a Timeline and Stick to It
When most people approach retirement, they tend to focus closely on finances. While you should never overlook your projected budget, it can be easy for money to become an overwhelming issue that acts like blinders to other essential aspects of your planning.
The factor of retirement planning that is most often overlooked is the timeline. Even if a tentative date is set, people often ignore it. Even if you’re anxious about settling your retirement plans, ignoring them can be hazardous, leading to poor planning.
Retirement may seem to offer a dislocating mix of relief and apprehension, but if you create a plan that will ensure a positive lifestyle, the transition will become much easier. Talk to a home builder that specializes in custom houses in active adult communities to get started on your plan today.
Article Submitted By Community Writer