Tag Archives | retirement checklist

Your Pre-Retirement Checklist

Your Pre-Retirement Checklist

Retirement is not what it used to be. There are many options for making the transition from full time work to being fully retired, ranging from early retirement to late retirement or a gradual shift through working part-time or choosing a less stressful job. Along with all these choices comes the dilemma of when and how to retire. It can be a nervous time because it is not always easy to get back into the workforce once you have left. So before you take the big leap, here are some things to consider:

  • What kind of retirement do you want and how much will it cost? Do a budget for weekly living expenses and big one-off expenses like travel and replacing your car.
  • Consider what your income will be, taking into account NZ Superannuation, other pensions, other Government benefits and any part-time work.
  • Calculate how big your retirement nest egg will need to be to finance your retirement lifestyle. There is a good retirement calculator at sorted.org.nz.
  • Review your current financial situation. Have you paid off all debt? Do you have a well thought through investment strategy that will enable you to achieve your retirement goals? Do you have some cash on hand as well as longer term investments? Have your insurance policies been reviewed?
  • Do a ‘dry run’. Try living for a few months on what your retirement income will be and see how it feels. Not only will this allow you to see how tolerable your retirement lifestyle will be; it will also allow you to save a bit more.
  • Do your financial housekeeping. Make sure your Will is up to date, set up Enduring Powers of Attorney and ensure all your important financial records are stored tidily and safely.

Now you are ready to make your choice!

Comments { 0 }

Checklist for Retirement

Checklist for Retirement

One of the strange things about life is that the older you get, the faster the years seem to go by. It pays to get your affairs in order at retirement so the rest of your life will be free of problems, especially if the effects of ageing come faster than you expect. Here is a checklist of some of the things you should attend to at retirement:

  • Is your Will up to date?  This is especially important if you have had a chance in circumstances such as a new relationship or death of a partner or child.
  • Have you granted Enduring Powers of Attorney to a family member or close friend? These will enable your chosen Attorney to make decisions and sign legal documents on your behalf in the event that you become mentally incapacitated.
  • Is your money invested appropriately? Your needs may have changed from investing for growth to investing for security and income. Tidy up your portfolio by selling off any small holdings, especially small overseas investments that could be time consuming to sell for the executor of your estate.
  • Have you reviewed your life insurance? Your life insurance needs in retirement should be minimal. Old whole of life policies can be earmarked for funeral expenses or possibly converted to endowment policies so you can enjoy the proceeds while you are still alive.
  • Have you reviewed your estate planning? Alternative options for the ownership of your house and investments should be considered, such as joint ownership, tenants in common, or a family trust.
  • Are your important documents filed away in an orderly fashion where they can be easily found by family members if anything happens to you?

Attending to these matters will give you peace of mind in later years.

Comments { 0 }