Managing money in your 60s is all about getting your retirement ducks in a row and moving onto the next phase of your life.
In your early 60s, retirement is likely within reach and it’s time to be thinking about it at a microlevel.
Planning for retirement should focus on planning your finances for life outside the workforce and ensuring you have a viable income stream. Another area that is important to consider is the emotional transition to retirement. You will now have more time on your hands than at any other time in your life – and that takes some planning.
As the focus of life shifts from career to lifestyle, being clear on your values and what you want out of life, now and into the future is important. Here are some areas you can focus on to make sure you get the balance right.
1. Plan the life you want in retirement
Of course, managing money in your 60s means getting the right income streams in place. The financial aspect of your retirement is critical.
Equally important, but an area that is often overlooked, is the emotional transition. Retirement is a significant shift in your lifestyle, so it’s important to think about how you will live every day.
Many people focus on the big-ticket items, like property and holidays, but it’s also critical to consider how you will fill your time. Days used to be filled preparing for, attending and winding down after work – what’s next? This might be hobbies, a brand new side hustle, philanthropic activities or social events, but it pays to have a plan.
2. Consider downsizing and/or a tree/sea change
Once you retire, you’re no longer fixed to living near where you work. So you may be thinking about downsizing your property or even making a sea or tree change. This can represent a significant lifestyle shift, so it’s important to get it right.
Be clear about your reasons for making the change and take on board any financial implications. Also make sure you are considering your longer-term needs: will your new location be suitable as you age?
Getting the location right is critical: you’ll need to ensure your new place has access to good medical care and transport. Don’t underestimate the importance of being in an active social community as well.
3. Give your time
When you retire, you will likely have more time on your hands than ever before. You can invest this in causes that are close to your heart by volunteering.
There are many ways to volunteer, and you may even consider a board or administrative role. That way you can apply the skills and knowledge you’ve learnt during your career. Volunteering can be a great way to continue to use your skills and give back at the same time.
4. Review your estate plans
If you have children, they may likely be reaching their own life milestones, like getting married, starting a family, or buying property. To support them, you will want to make sure you are protecting their inheritances. Making sure you have the right estate plan is critical at this stage.
5. Get expert advice
More in this series:
- Top tips for managing money in your 20s
- Top tips for managing money in your 30s
- Top tips for managing money in your 40s
- Top tips for managing money in your 50s
This is an edited version of an article that originally appeared on Apt Wealth Partners and is republished here with permission. This article contains general information only. This should not be relied on as independent finance or tax advice. If you are after specific professional advice, speak to your registered tax agent/financial advisor or reach out to Apt Wealth Partners.