Retirement planning, in a financial context, refers to the allocation of savings or revenue for retirement. The goal of retirement planning is to achieve financial independence.
The process of retirement planning aims to:
- Assess readiness-to-retire given a desired retirement age and lifestyle, i.e., whether one has enough money to retire
- Identify actions to improve readiness-to-retire
- Acquire financial planning knowledge
- Encourage saving practices
Producers such as a financial planner or financial adviser can help clients develop retirement plans.
Other things to consider:
- Prepare mentally and plan to involve in hobbies and develop new interests to be engaged with retirement life.
- Plan and prepare for the transition impact of retirement with home life.
- Pre-plan how active you want to be when you reach retirement age, engage in part-time, contract work or in activities that doesn’t overextend oneself.
- Stay connected with the community.
- Learning to appreciate leisure, moderating work-life balance and to say no without regrets.