Retirement has been something I have been looking forward to for ages. Literally for years, I have been planning and planning. And planning for retirement is no easy task. It’s exciting, but it’s not easy.
There are just so many things that need to be planned out, what your income is going to be, what your long term financial plan is, what savings you have, what will happen if there’s something that requires a very large payment, how you’re going to manage your spending, and how you want to transition into retirement.
Of course, the stereotypical “retirement trip” is a big thing, but in comparison with all the things that need organizing simply so you can live the rest of your life how you’re used to is even bigger. If you forget about this aspect, think only of all the fun you’re going to have, then you might as well just figure out how to work for a few more years after your fun. You need to be able to know where your grocery money will come from, how you’re going to pay your bills, as well as other expenses like shopping trips, family birthdays and trips to the hairdresser.
Before you know it, the expenses start to add up, and when you have no stream of income, and you’re relying on a finite amount of money, things can quickly spiral and get out of hand. That’s why using retirement planning strategies is so important. You need to have all this figured out, just as you would have your budgeting sorted out when you needed to pay rent, or your mortgage in the past years of your life.
Once you have this planned out, that’s when the excitement starts. That’s when you can start planning your big trip away, and do all the adrenaline-pumping things you wanted to do when you were young but never had the time or money to do.
If anything, retirement shows you the value of hard work. It shows you how much it means to start work when you’re young, start your superannuation, and start saving. Because dollars and cents really do add up by the time you are ready to retire. If you think about it, the interest on your superannuation when you’re 19 could be the difference between going to a top rated restaurant in Italy, and hitting up the local pizza shop in Glen Eira.
Now I’m not saying you need to start planning your retirement at 19, but when it comes to it, start planning it out. After all, a goal without a plan is just a wish.