If you’re planning your retirement sometime in the next 3-5 years, that means you’ve got a lot to think about. Not only do you want your retirement to be a time when you can rest and enjoy your hard-earned time off, but you also want to be financially secure and able to settle down for the next part of your life. In the 3-5 years leading up to your retirement, there are three very important things you should consider and keep in mind for your retirement planning:
The Current State Of The Market And How It Might Affect Your Future Retirement
You might be thinking about inflation or possible recessions in the short term, but don't let the current state of the market affect your long-term goals regarding retirement. It would be in your best interest to stick to your long-term goals for investment.
You should not let current market noise derail your plans or distract you from your future goals. Instead, you should work on steadily building your investment portfolio.
What Kind Of A Lifestyle Do You Expect To Have During Your Retirement?
While it is essential to save up for retirement and ensure you are financially prepared, there is a lot more you need to consider about the kind of lifestyle you want during retirement. Retirement can be a significant chunk of your life – sometimes even going up to thirty or so years.
You don't want to find yourself thinking, "now what?" once you've retired or end up spending frivolously on holidays and luxuries in the first couple of years. Take the time to think about what you want to spend your time doing once you have retired. Consider joining clubs and organizations, plan out your holidays and vacations and think of other ways to align your retirement lifestyle with your retirement goals.
Whether Or Not You Are On The Same Page As Your Spouse
Unless you and your spouse are around the same age and have similar careers, it is likely that you would retire at different times. You might wish to retire now, whereas your spouse wouldn't reach the retirement age for another 5-10 years.
In such a case, it would be a good idea to have an open conversation with your spouse about how you want to plan and coordinate your retirement. Some people can be willing to retire early or put off retirement for a few years.
You also want to consider whether you would be happy to have one of you retire while the other continues to work and how that partner's work would affect your ideal planned retirement lifestyle. Modeling your ideal retirement and planning the next stage of your life can be a great way to ensure your retirement is everything you hoped for. If you are a few years away from retirement, consider the three things we have discussed.