While money provides some freedoms, choices and security, many are still unprepared for later life requirements both financially and in readiness for the emotional aspects of aging and possible retirement. Emotional, mental and physical freedom are also manifestations of true wealth beyond purely financial worth. Financial freedom is however considered by most as a desirable form of wealth. There are options to achieve financial freedom in later life too.
Money provides choices and some security against the unforeseen, such as medical, dental and other healthcare costs of aging, savings are good but steady income is better.
Money allows freedom and the ability to make choices like travelling, how we spend our time and with whom, where and how we live, and what we do and where we do it.
Freedom is a form of wealth.
The slowing, prevention or even reversing aging, improving appearance, confidence, sexual health, diet and exercise, energy levels, are all important factors in personal wealth. This is staying ‘living young and staying young’ and it also allows personal growth and the creation of more meaning in life.
So, while wealth means different things to different people it appears that wealth means possessing the freedom to enjoy the small, everyday pleasures of life, appreciating each precious, present moment. Balance is crucial, as in so many aspects of life. True wealth may simply mean deeper relationships with others, oneself and a higher power or spirituality or higher self.
Meaning and fulfilment as a form of freedom?
When you reach 55+ many look around at what they’ve accomplished – I believe that it’s meaning we truly seek. Being as healthy as you choose is paramount, and for most, meaning and fulfilment next – with financial security is close behind oxygen !
At this time many people, seeing their retirement looming plan for health, and what they will do with their “free time” and what their financial resources will allow them to do. However, remember that health must take precedence, I’ve heard many people committed to not touch savings for something that could either improve their or their family’s lives.
This clearly requires more thought than is often given, far better that you should have an income stream to supplement your savings. That’s what I did.
With the increase in longevity hoped and planned-for, many people’s finances will be stretched and for some, travelling, shopping and spending time doing just what they liked may not be a realistic option.
After a lifetime’s commitment, it hardly seems fair but clearly a reality for many. Many have done well and saved significantly – remember if you’re going for looking good feeling younger, your savings may have last 40+ years!
How much money will you need to “retire” ?
These are supposed to be the best years of your life but how much money will you need? There is a change taking place and the way to look at retirement is from the perspective of moving from a single to a multiple pay-cheque system.
Each country has specific opportunities. Depending on the country, when you retire you may be eligible to receive Canada Pension Plan, UK Pension, US Retirement Plans, Australian Age Pension, etc. Obviously what you are eligible should be sought and requested no matter where you live, Canada, the UK, US, Australia, etc. You’ve worked for it – however, this may not be enough to fund the lifestyle that you really want for now and the future.
As an example, many studies suggest that 50% to 75% of baby-boomers plan to work in retirement.
What is retirement – a different concept to different people?
The incidence of self-employment is now dramatically increasing after age 60. Many people are going into self-employment in retirement – whether it is consulting or opening up a business themselves.
What you did for work before retirement is not necessarily what you should or have to do after retirement.
“If you enjoy what you do – you’ll never have to work another day in your life!”
How much do you have invested or likely to receive from pensions, etc.
At our age we are generally better equipped for self-employment as we have more life experiences and generally, less pressure to earn immediate income and rewards.
You can become financially successful, and without sacrificing the rest of your time – the very reason you want more money – is to enjoy it – you can’t take it with you!
As we get older, we also tend to have fewer distractions like dependent children giving us more time and focus to succeed. The retiree of today is younger than ever before and not just younger by age but physically, mentally, emotionally and spiritually too.
The current and future retiree is capable of so much more than the retiree 30 years ago that retired at 65 and statistically lived to 70 – working in retirement is becoming commonplace but what should you do?
Having a budget and considering balancing spending is always a good idea. Be creative – saving in one area can allow spending or savings in another.
Having a budget and considering “balanced spending” is always a good idea. Be creative – saving in one area can allow spending or savings in another. As with all planning however, there is a degree of discomfort with change (even if you know it’s for the better!
The Art of Saying No – while time and money are not the same (time is not renewable), both can be utilized differently and then spent wisely. CLICK HERE for an interesting view point on “saying no”, nicely.
The value of finding a well paid hobby
Of course, finding a potentially very well paid hobby that you enjoy and maybe just doing it part time will help you do those things you dreamed of doing in retirement.
Travelling without rush, spending time with grandchildren, experiencing other countries and cultures, cruises, living in warmer places for the winter? Of course right now, we might need to amend our plans for a while!
How can you achieve this while you are enjoying your chosen lifestyle?
While this may sound crazy for some, why not have achievable dreams? –
What is a digital business and lifestyle?
I wanted to find something that would provide income yet represent a change in direction. I also wanted a mental challenge but one with enough human support – I didn’t have a technical background nor training. I’m enjoying the journey (now) although its been a steep learning curve!
I recommend reviewing online / digital opportunities if you’re looking for income to supplement other incomes or indeed to rely on this income alone. You set the time limit, income and the opportunity to develop, enrich and increase your own and other’s lives – and you get to share what you love! Watch this space ….
Dr. Stephen Bray