How to avoid running out of money in retirement

Running out of money in retirement.

It’s a really scary thought.

It’s actually one of the biggest fears people have about transitioning into this next chapter of their lives.

Many people also worry they won’t have enough money to live the life they want.

And that right there folks is the reason why planning for retirement mentally and emotionally first, and then working with a financial planner to flesh out your plans even further, will help give you the bigger picture.

If you don’t know how you want to live your life in retirement, how will you know if you have enough money?

Planning ahead is the key to alleviating your fears.

– Do you want to travel the world six months out of the year?

– Do you want to buy a motorhome and travel?

– Do you want to buy a recreational property outside of Canada?

– Are you staying close to home because of grandchildren, family and /or volunteer commitments?

– Will you have enough money to maintain your property, pay down your mortgage (if you still have one), pay all of your day-to-day costs such as utilities, food, insurance?

– Will you need money to help out your adult children?

There are so many paths you can take and each path may require a different level of financing. The more clarity you have about how you want to live your life in retirement and know your personal needs and goals — the more accurate your financial plan will be.

If your goals or life circumstances change such as you want to buy a new house, go on a trip of a lifetime, a change in marital status, become ill, etc., it is best to check in with your financial planner.

They will be able to look at your entire financial picture and you will be better informed as to how it may impact you in the long run.

So, as you get closer to retirement, start planning for the next phase of life by identifying your needs and goals to ensure you’re going to be on track financially.

If you realize that some of your goals may require more money than you have set aside, then you have time to make some adjustments which could include increasing your savings, decreasing your spending, working longer, transitioning to part-time, etc.

Your financial planner can help you look at the different options and what might work for you.

And on the mental, emotional, dreamy side of planning for retirement, I’ve got your back.

My Power Up Your Retirement Program is an online educational program which provides a high-quality video training series, group coaching, an online community and other educational resources focused on helping you transition into a successful retirement. The focus of the program is not financial.

Instead, it focuses on helping you plan psychologically for a successful retirement. The goal is to help you plan for your transition from working full-time to retirement post-career and help you manage worry, sadness and fear so your retirement will be happy, meaningful and purposeful.

Check it out today at https://www.powerupyourretirement.com/.

And once you’ve done the hard work, it’s time to book an appointment with your financial advisor.

Happy planning. 🙂

Fear of social isolation in retirement

Loss of social network is a big concern among pre-retirees. When you will retire from your career, you more than likely won’t be seeing your colleagues and / or work friends everyday but that doesn’t mean that they are gone from your life forever. If you had good work and personal relationships with your co-workers, then these friendships may be strong enough to continue once you have left work.

Like all relationships, however, you need to make time and work on your friendships to stay connected.

If you don’t really have any close friends at work or outside of work, then you may need to nurture your existing relationships and even expand your network.

Some ways to do that are to:

  • Identify your interests and hobbies and join a local club e.g. if you love gardening, look for local gardening clubs

  • volunteer for a personal cause

  • join service clubs or associations – there are lots of service clubs who welcome new members, identify the service clubs in your area.

  • A club that I will be joining when I retire is PROBUS club. Their goal is to provide fellowship, friendship and fun in their retirement and semi-retirement years. Some of my retired friends are members and they are loving the people they are meeting and the experiences they are having. Visit www.probus.org for more information and for a club near you.

  • attend a class at your local college or

  •  attend community or church events

There are probably lots of events going on in your community so pick up the local paper or read it on-line and get plugged in to find out what is happening in your community.

Visit www.powerupyourretirement.com to watch the ‘Ten Most Common Fears About Retirement’ Masterclass video.

Fear of a Lack of Purpose in Retirement

A purpose is very important to living a meaningful life. Ernie J. Zelinski, author of How to Retire Happy, Wild and Free says that, “Two essentials for successful retirement are sufficient funds to live on and sufficient things to live for.”

You may have a lot of hobbies, interests and leisure activities that may keep you busy, however, if you want your retirement to be meaningful, these will most likely not be enough. You may need to find your purpose.

So exactly what is ‘purpose’? Think of ‘purpose’ as your ‘why’ – The ‘why’ behind what motivates you to get out of bed in the morning and excited about your day.

Your purpose is your authentic path, being the best ‘you’ are here to be by sharing your unique gifts and strengths to make a difference in this world. By doing this you add value to the lives of others while creating value in your own life. It’s win-win. Your purpose defines who you are and how you will live.

Just because you will be in retirement, doesn’t mean you can’t continue to live your purpose. In fact, if you don’t live your life on purpose, you are more than likely going to feel unfulfilled and dissatisfied with your life in retirement.

Knowing and living your life on purpose is key to a meaningful life.

Fears can be debilitating as they can stop us from achieving our dreams and doing the things we want to do. So, don’t let your fears stop you from living the life you want.

Identify, understand and take action to overcome your fears. These are important steps in preparing yourself psychologically for your retirement.

Visit www.powerupyourretirement.com to watch the ‘Ten Most Common Fears About Retirement’ Masterclass video. 

Marielle Gauthier, owner and principal of Redworks Communications, is a certified Results coach; an Associate Certified Coach (ACC); and a Conversational Intelligence Coach.