Retire Well Retire Happy

Practical Retirement Advice

Epsidoe #116: Baby Boomers are rethinging the Best Places To Retire

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Epsidoe #116: Baby Boomers are rethinging the Best Places To Retire

 
 
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Baby Boomers are rethinging the Best Places To Retire

There are many lifestyle options out there and baby boomers are retinking the best places to retire. Half of retirees choose to relocate and are learning how retirement downsizing can create exciting opportunities.

When baby boomers rethink the best places to retire they are ending up all around the world. This is the time to become adventurous and spread your wings. The traditional models for retirement communities are getting a shake up. Do you want to be treated as a patient in retirement? It seems as though senior citizens are being herded into retirement communities without thought for the individual needs.

Retirement Communities and/or Independent Living Facilities are most appropriate for seniors who can manage their health care needs on their own or with assistance from family in an apartment type setting. Independent Living does not offer health care services or assistance, but may offer a monthly meal plan, housekeeping, social activities, and transportation. The cost of assisted living places is outrageous in some countries.

However if you want to see your money last longer and are up for a bit of adventure there are other retirement possibilities to consider. Some retirees and moving to another country for a variety of reasons including making the retirement savings last longer and gaining some respect. In some countries seniors are respected and valued.

What are the advantages of a Retirement Community?

  • Nutritious Meals, Activities, and Housekeeping offered
  • Maintain Independence in a social setting
  • No upkeep or utilities to manage (except personal phone and cable)

These same advantages can be obtained in other ways. Retirees can have the Nutritious Meals, maintain independence and enjoy no upkeep to manage in other places. Some have rethought their options on now enjoy life on a cruise ship permanently like Mario Salcedo  or how does living in a Holiday Inn as Terry Robinson does.

Both these gentleman have done there sums, weighed up the pros and cons, have taken the plung to live differently and are reaping the benefits.

Have a listen to Ann E Nelson talk about how there are many lifestyle options out there and how baby boomers are retinking the best places to retire.

Connect with Ann online

Have you listened to the last episode of Retire Well Retire Happy Podcast?

What Can You Do To Future Proof your Retirement Income?

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What can you do to Future Proof your Retirement Income? When my aunt turned 90 her guaranteed income from her annuity finished at 90. She had outlived her money and had to get used to living on the government pension.  Could you survive on just the government pension? What would you have to miss out on if your retirement income was suddendly reduced?

There are a few necessary questions that need to be asked when looking at Retirement planning. How long will your retirement savings last? What could you do to put more into your savings to make your nest egg  last longer? The sooner you do this exercise the more time you have to implement some strategies to Future Proof your Retirement Income.  Involve your significant other in this exercise and consult a Certified Financial Planner in your delibrations.

Why you could even retire sooner if you get your investing strategy right. It’s about having a look at things more creatively. David and Dana Hagstrom faced that situation, came up with a solution and are now helping others bridge the gap to retirement. You may be able to retire earlier than you thought.

grow your nest egg

You need to spend some time planning the type of lifestyle you want to enjoy in retirement. This will determine how much money your investments will need to earn to provide you with a suitable pay check each month. If you find you are coming up short of money then perhaps you could generate some extra funds for retirement to bridge that income gap.

 7 options to generate extra funds:-

  1. Keep working  past retirement age either full time or transition into retirement by working part time;
  2. Have investing strategies in place like investment properties;
  3. Supplement your retirement with a business. Either off-line or on-line. What could you do? For example become an agent and sell Herbalife or Avon, having a shop on eBay is becoming popular. If you can generate an extra $800 per month/$9600 per year can be the equivalent to having saved $240,000 towards retirement assuming a 4% return on your money. (The formula to work the equivalent savings out is divide the extra yearly income $9600 by 0.04 (assumed return))
  4. Releasing equity in your home. This can be achieved by either down- sizing and investing the excess funds for your future or taking out a reverse mortgage and spending the kids inheritance. A one level dwelling is most popular for retirees.
  5. Save more now. Cut your spending to increase your savings. What could you do to cut your spending?
  6. Take in a lodger to supplement your living expenses. If you are on your own this can make a lot of sense to rent out a room. You will get some company and some extra money.
  7. Join an investing club and learn how to trade shares on the stock market. In my town the local University of the Third Age (U3A) run a Successful Investor Course to teach how to buy and sell shares. Ask around and see what is available to learn in your town.

We need to recognize that the population and demographic changes will affect us all.  The qualifying age for the Aged pension is rising. Spend some time planning and educating yourself now will give you more choices later on. Ask yourself what can you do to Future Proof your Retirement Income?

Early Retirement: Would you like to travel the world at your leisure?

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Do you want to be able to pick your retirement date? If you want an early retirement then would you like to travel the world at your leisure?

The biggest difference between a comfortable and a modest lifestyle is the cost of our leisure activities. What type of lifestyle do you want in retirement, modest or comfortable?

I like the idea of more people having the choice to retire younger. The trick is to know what sort of lifestyle you want to enjoy in retirement. Once all the essential expenses are out of the way then our lifestyle budgets will get the balance of funds.

This could mean the difference of over $10,000 per annum or more for a couple. It goes back to planning and have you given much thought to what you want to be able to do in retirement? Do you want to travel and if so how often and to where? Are you happy to do a road trip within your country or do you want to travel overseas? Are you planning to go the movies, take in the latest show at the theatre and go to the game? How often will you eat out?

If you struggle to make ends meet then leisure pursuits will have a modest budget. You can still have an enjoyable life but you will have to put effort into planning your social activities on a budget.

To achieve early retirement we all need to have a strategy in place to save more than we spend. The earlier you want to retire than the more you need to save. How much is enough is the age old question? A guide is to put away at least 15% of your income.

In some countries it is compulsory for an employer to put a portion of wages into a retirement plan for employees. A good start for you then is to top up your retirement savings with the difference. In Australia compulsory superannuation for retirement is currently 9 1/2 per cent of gross wages. You need to be prepared to save at least 5 percent extra towards retirement on a regular basis?

If you want to get really serious then you could consider extreme savings. Mr Money Mustache states that ‘your middle-class life is an Exploding Volcano of Wastefulness’.  This website advocates that you will easily be able to cut your expenses in half so you can save half of your income. Even  saving two thirds or more is possible. Mr Money Mustache claims that by spending much less than you earn is the way to get rich. The ONLY way with surprising effects: if you can save 50% of your take-home pay starting at age 20, you will be wealthy enough to retire by age 37.

Norm Pyle and wife Deb from Kneedeepinit.com, decided to retire to a life on purpose. They had a radical shift and moved from cold Colorado to retire to the island of Vieques, PR. Norm & Deb were able to achieve their dream  when they decided they wanted to live our lives on purpose, not on autopilot. So that’s the mental shift they made, and that in turn made all the difference to their retirement savings.

Depending on which country you live it this may or may not be possible. It would be a good challenge to see what you could cut back on to save more of your take home pay packet. I read of a lady in the USA that after having a hard look at her expenses decided to sell her house, save the mortgage payments and chose to live in a trailer park. The mortgage payments went into her retirement savings instead and she is now well on the way to having an early retirement.

One family have given up their cars. They catch public transport, ride push bikes and walk. You can run a ruler across all of your expenses like buying the cup of coffee or more every day and see where money is being spent on non-essentials items.

 To make significant differences to your savings may require a complete re-think to how you currently live. Are you up for the challenge? Depends on how badly you want to be able to pick your retirement date?

Retirement Coach Shares The Best Way To Prepare for Retirement

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Settling into retirement can be relaxing, fun and carefree for those who prepare well. Retirement coach Ann Nelson shares insights into how to make the most out of the later years in life.

For many people, retirement can feel like a huge unknown, and getting organised for this lifestyle change can create feelings of uncertainty and doubt. Contributing to superannuation funds and trying to understand the best way to prepare for retirement are both common concerns in social and mainstream media.

Have fun in Retirement

Retirement coach, Ann Nelson says she often receives questions about super contributions, lifestyle choices, how much to save for retirement and advice for empty nesters. “How much do I need to retire at 55 is something I hear often from people who are incredibly organised, and aiming to retire early from their working life. But the biggest concern from people is that they will run out of money, or won’t be able to maintain the lifestyle they desire based on their savings and superannuation funds,” says Ann.

“I always encourage people to spend some time planning their retirement before it comes around at 65. Typically ask yourself questions like, what type of lifestyle do I want, how much money have I saved, and how much money will I need each year. If the answers to these questions come up short, that’s okay because there are always income supplement options for people who want to top up their finances.”

The best way to prepare for retirement: 

  1. Start saving for retirement as early as possible. “If it’s viable, always try to contribute 15 per cent towards a superannuation fund instead of the standard 9.5 per cent,” says Ann.
  2. Downsize. Ann’s advice for empty nesters is to always downsize once the children have left the house.
  3. Plan. “People need to re-evaluate their life goals and organise their retirement finances around their expectations. “If you’re planning on retiring early, you need to be organised. If you don’t know where you’re going, you won’t know how to get there.” Ann says.

Speaking out of experience after becoming a widow at age 55, retirement coach Ann did a lot of research work, interviewed retirees and asked a lot of questions to be able to cope up with retirement alone: “Retirement can be worthwhile and fun. It is not lonely no matter what your budget is. Stop stressing, find the calm in you; financials don’t have to be scary.”

Three Tips for a Smooth Transition into Retirement

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Retirement is another major phase of life, just like going to school for the first time, getting married or seeing the children moving out of home. While some people manage to jump into retirement smoothly, others find the adjustment to retirement difficult.

Retirement coach and author of ‘Retire Well, Retire Happy’, Ann Nelson says there are ways to make the transition into retirement smoother and manageable so the change doesn’t feel drastic after participating in the workforce for decades.

“Most people preparing to retire can start to feel lost, because they’ve identified within their job or income for most of their life. Once a purpose has been set heading into retirement, the decision making process becomes clearer, and there’s a sense of contentment and satisfaction,” says Ann. “You don’t need to change the world or save the planet in your later years, you just need to enjoy the last part of your journey.”

What's your Ideal retirement look like?

3 Tips For People Preparing To Retire:

  1. Make a decision about where to settle down before reaching retirement. “Moving as a senior can bring about a sense of insecurity, fear and discomfort, which can be traumatic,” says Ann. “It’s always better to know your surroundings and trust your neighbours as you age, just in case remaining completely independent becomes a challenge.”
  1. Focus on making healthy decisions, for the body and the mind. “My healthy living tips for seniors would be to join a supportive and friendly community group, exercise regularly, and eat in moderation,” says Ann. “Staying happy and healthy will make it possible for you to do the things you love.”
  1. Be prepared. “Try and stay flexible, so changes don’t knock you sideways. Psychological blows and unexpected financial outlays can be difficult to manage if you’re not prepared for life’s changes,” says Ann. “Always have a back-up plan; it’ll only add to your feelings of security.”

Ann encourages people to look for volunteer opportunities for retirees in their area, to combat the void after finishing up with regular work. According to Ann, joining a club, group or new community fosters new friendships and gives a sense of purpose, which are two of the things most commonly missed from working full time.

“When we feel happy and content, we tend to breathe more deeply, smile more frequently and laugh more easily, which relaxes the body and increases oxygen intake,” says Ann.