Everyone’s idea of lifestyle in retirement differs. Many people look forward to a simple and quiet retirement. This might include downsizing and moving into a retirement village, and staying within the local community, near family and friends. For others a retirement lifestyle would not be worth living unless it included travel, hobbies that they’ve always wanted to partake in such as regular golf, and a home with all the grand finishes that they’ve always longed for.
With this in mind, one could argue that budgeting for retirement should be based on the lifestyle that you plan to have. But many experts say that you should be putting away a percentage of your income and be satisfied with that when retirement comes about. You could seek financial advice and then plan according to the advice. Whatever you decide to do, make sure that your retirement savings are going to be enough to meet your retirement lifestyle plans.
It could be that you need to still work part-time and semi-retire in order to maintain the lifestyle that you want. But for others, staying in the workforce to some extent is a lifestyle choice. They do it to remain satisfied, even though they don’t need the additional income.
Whether your choice is a quiet lifestyle or sailing through the Mediterranean, remember that personal finance is personal and there’s no set rules. There’s a lot of advice out there to filter through, and you need to look at many factors. Lifestyle is one factor. Other factors include when you decide to retire, your health status, your insurance and debt obligations, and any debts that you’re servicing.
Once you’ve decided on the lifestyle that you want to have, the exciting part can start. Start looking into the hobbies and interests that you have, and look at making friendships with people who share the same interests. You could find a travel buddy, or someone to play golf with if you haven’t already done so.