Retirement is a completely different phase in the life of a person and it comes with its own peculiarities.
During your working life and well before retirement, you have become used to a regular income. The regular income comes in the form of salary or wage paid periodically at least monthly.
The regularity of your income over the years would have made you to adapt your spending to fit into your income patterns. Therefore, when it is time to retire you already have your spending pattern well practiced, even though it may change a bit in retirement.
Living comfortably in retirement is supposed to be the dream of everyone. When the time to retire comes the greatest question you have to ask yourself is this, will you have enough income to continue the lifestyle you had prior to retirement?
This will depend on the lifestyle you want to maintain and the type of income you will have from the pension scheme. But in most cases the income from the pension scheme will not be enough to live the life of your dream in your golden age.
When you think of retirement you need to ask yourself the following questions:
1. What lifestyle will you want during retirement?
2. What is your current financial situation?
3. How will your financial situation change at retirement?
4. How can you control your financial future to be able to retire with the resources needed to achieve your desires lifestyle?
Your Retirement Lifestyle
As you think of retirement days you are supposed to think of how you will want to live in retirement. In the light of this you may need to think of the following:
1. Your home: where will you live? Will you remain where you are, or move to a different part of the state or country?
2. Transportation: what is the cost to you now? Will you move in retirement, how much do you spend to and from work now.
3. Food: Maybe while you are working you eat lunch outside all workdays. Calculate how much you spend a year on lunches and other meals at work.
4. Clothing: Will you buy cloth to impress while in retirement? How much of Aso-ebi were you buying while working, will the trend continue in retirement?
5. Health and Medical Expenses: With age come all sort of ailments naturally associated with ageing, how prepared are you for the expenses associated with this?
6. Entertainment: Will you spend more or less on going to parties and social gatherings.
7. Recreation: Will you spend more money on leisure, such as golfing, tennis, squash and polo.
8. Travel: During retirement will your traveling increase.
Look at the eight points very well, the tendency is there for you to spend more in some categories. You are likely to spend more on health and medical, also because you have more time you may spend more on travel, entertainment and leisure activities.