Adapt to Thrive
Patrick outlines these four key principles for making a success of retirement planning for this life stage, both financially and mentally:
Principle #1: Keep the plan and the planning holistic
“[Your plan] can’t be just about financials. It has to be holistic and structured within the means that are available to [you],” says Patrick. Holistic planning also takes into account how you manage your lifestyle, your own physical and mental stimulation needs, and those of your dependants. As these needs change, so will your plan.
Principle #2: Play open cards
Whatever your financial situation at the start of your retirement, don’t hide from it. Conversations with your partner, your financial adviser, your kids and with your life coach or retirement coach need to be honest and open. “You can’t change the past. You need to look forward, acknowledge what you have, and the lifestyle you may need to adapt to,” says Patrick. “Discuss it with your partner and start formulating your plan together – preferably before the retirement date.”
Principle #3: Don’t go it alone
Retirement can be overwhelming. Adapting to the changes ahead of you will take time and guidance, so lean on professionals who can help inform and guide the change management you’ll need to consider as you step across the retirement threshold. Your finances are also entering a new life stage, and you’ll need to make important decisions about these too. “You may not be able to undo many of these financial decisions,” cautions Patrick. “Invest in educating yourself about your options, so that when you have those conversations with your financial adviser, it’s not a one-way conversation and you can have a robust discussion about it.”
Principle #4: Stay involved in your plan
As your life changes, so will your plan, which is why it’s important to adapt it to keep it relevant. “Be alert to how your plan is performing against your expectations,” says Patrick. Have you factored in the time value of your money and whether your savings are protected from inflation? How can you manage your income stream for optimum longevity? Are your tax and estate planning needs taken into account? Asking these questions helps you stay involved in your retirement planning.