How to Plan a Happy Retirement?

Money can't buy happiness, but you need money, a lot of it to afford a happy and content life. The definition of a comfortable life has changed a lot in the last couple of decades, and we have replaced spiritual happiness with materialistic happiness. And materialistic happiness is only possible for those who can afford it. According to the current generation of people who’re planning their retirement, a comfortable post-retirement life is that which has all the luxuries in it, along with an incessant source of money to afford it.

The current culture adopted by the people has divided the life into three different stages: Studies, Work, and Retirement. Each of these three stages are interdependent, and has different benefits or side-effects. The first stage; study to land a good job, the second one; work life to earn enough and sustain life after retirement. This thought process has corrupted the mindset of people, and as a result, they lack happiness and look forward to finding happiness in retirement.

But, some people even find difficulties in ensuring happiness in their post-retirement life due to the scarcity of money, or lack of proper planning. As retirement experts suggest, work hard and play well today for the kind of life you need for tomorrow.

So, all said and done, if you want your post-retirement life to be stable and happy, you need a constant source of money to afford the happiness. Below are some tips to ensure an abundance of cash-flow post-retirement to afford happiness.

10 Key Tips To Have A Happy Post-Retirement Life

#1. Control Your Expenditure

Hold on your horses or your elephants and control your spending habits. We often spend money on stupid things out of excitement, which often leads to money issues later on. Some people are smart enough to understand the consequences of overspending and restrict themselves before its too late. However, there are people who are born with a care-free nature and spend their hard-earned money like they're the kings and queens of their times.

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It’s okay to spend money on things, but only on those which are seriously necessary for survival or are a part of your future plans. We often commit the same mistake during pre and post-retirement by losing our self-control and leading our retirement saving to cessation.  

#2. Start A Mayday Saving For Emergencies

Saving is a very good habit to adopt while you're working, and you'll realize the same when you're in dire need of money, and suddenly you remember about the money you started saving a few years ago. Pre-retirement savings are a blessing in disguise for retirees post-retirement.

Let us understand this with an example, let's assume you feel like going for a vacation with your wife post-retirement but you can't use or endanger your retirement money for the same, in such scenario, it would feel disgusting knowing that you can't afford a trip with your wife. And suddenly, something reminds you of the little money you used to save secretly every month. Just imagine the feeling and the happiness you’ll feel!

A mayday saving is necessary for everyone, and it doesn’t matter how much they earn. A small amount of money saved every month other than saving can turn into a significant amount someday. So, it’s better to have a secret mayday saving.  

#3. Ensure A Regular Cash-Flow Post-Retirement

Life post-retirement will be a little less expensive compared to the current time, but it doesn't mean there will be zero expenses. So, in order to pay for the expenses, you'll need money. While it's is very common to have retirement savings, but ask yourself if that will be enough to survive? You need a regular cash flow post-retirement, and your retirement savings will fulfill some of your needs, but you have to make compromises with others. So, don't settle with just the common methods of cash-flow after retirement. Be smart enough and invest on other things that can yield maximum returns during your retirement days. Invest in time-bound saving policies which allows you to withdraw money only after a fixed maturity period. Invest in properties, stock market shares, private-retirement policies that can act as an extra source of income.

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#4. Engage In A Part-Time Activity To Stay Active

One good way of finding happiness in retirement is to keep yourself engaged with something even after retirement. A part-time job like teaching at a nearby school, a job at a supermarket, or something that helps you earn a fair amount for every hour you spend there. A part-time job will help you keep adding a little bit every month to your savings and will keep you busy. It is often observed that doing nothing after retirement leads to boredom and people get frustrated easily, which later leads to problems in life.

#5. Don’t Get Burned On Taxes

The money that you save as retirement fund, in most cases, is taxable and you'll be taxed every time you withdraw the money. There are certain pros in income tax liability policy that can be leveraged to save some taxable money. In addition, every developed or developing country has special retirement policies that allow people to save for their retirement without any further deduction as the money is already taxed . In layman's language, the money deposited in these accounts(tax-free account) are pre-taxed.

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#5. Long-Term Insurance Care

Medical expenses are one matter of discussion for every retiree which is very frequently ignored by everyone. Medical bills are one of the biggest expenses that you will have to bear post-retirement. As most medical professionals suggest, a long-term care insurance helps keeps you free from the stress of medical expenses. So, it's always better to buy a long-term health care insurance while you're completely healthy and pay the all the premiums while you're earning. As you grow up, the cost of health care insurance increases as health risk increases with age. Moreover, if you buy insurance after crossing 50, the insurance company will decrease the risk coverage for existing disease.

#6. Create An Estate Plan

Whether you're a little in the name of personal assets, or you have a substantial number of retirement assets, estate planning is vital in both cases. Estate planning can be done post-retirement, but it's better done as early as possible when the odds are in your favor. Some even argue on the importance of estate planning, assuming that their family can manage without them. But, to be very honest, your assumptions are just assumptions, and lack of a proper estate plan for the smooth transition of your asset can be a major reason for disputes among your family members, especially in your absence.

Also, a well-articulated estate plan along with a will helps minimize the income tax that your estate may be obligated to. Some stressful things are better to be avoided before your retirement; estate planning is one of them.  

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#7. Make A Post-Retirement Budget

This might sound odd or obvious, but what's  important for a happy retirement is that a budget must be calculated well-in-advance. We all know how helpful a budget is in managing our finances pre-retirement, in a similar way, it's equally important to have a pre-planned post-retirement budget in place. But, make sure you leave enough room for improvisation in your budget whenever needed.

We can understand how uncomfortable it could for you to live the most peaceful days of your life being tied to a budget but trust us, your peaceful days will soon turn into a nightmare without a budget.

Make strategies to decrease your post-retirement living expenses, so that you don't consume all your retirement savings before the expected time. Plan out things that you feel would be necessary after your retirement and include them in your post-retirement budget.

#8. Adopt A Healthy Lifestyle

Health will be an inevitable matter of consideration post-retirement than pre-retirement. You can easily pay your bills before retirement as you have a regular income source and your income is not limited, whereas, the exact opposite is true for life post-retirement. The more focused you're about your health post-retirement, the lesser chances of paying bulk medical bills.

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#9. Spend More Time With Family

Retirement is the time when you get to resolve all the complaints with your kids. How many times did your son or daughter complained that you're not spending quality time with them? If the answer is many, take retirement as an opportunity to positively address your kids grievance. Spend time with your kids, grandkids, go fishing, play basketball, and do other activities to keep yourself happy. After all, nothing is better than spending your last days with your family.

Also, we are just saying; it can save you from using your retirement funds and sustain them for longer.  

#10. Leverage The Reverse-Mortgage Policy

If you failed anyhow to save enough for your retirement and facing issues now, you can apply for the reverse mortgage. The reverse mortgage loan is mostly considered a good alternative for retired couples who live alone or independently and own some expensive assets like a house of their own. According to this, a reverse mortgage loan allows the borrower to convert part of the equity in their homes into cash. The product is a feasible means to ensure a regular cash flow for retirees who are sustaining a livelihood on a limited income. They can utilize the accumulated wealth in their homes to look after their basic monthly living expenses and also pay for their healthcare using this reverse mortgage loan.  

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Retirement period is something which we expect to live with happiness and peace of mind. But, every happiness that you expect in life is supposed to be planned for with proper financial support that can help sustain the happiness till the end.  

We hope you liked the article. Let us know if you have any suggestions, or opinions regarding the article using the comment section below.

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