Planning for your transition into retirement: The bottom line

Retirement planning: Seven key areas

By Barry LaValley

1. Your vision for the future. Make sure you’re clear on what you’re retiring to, not just what you’re retiring from. Think about the values you will take into this next phase of life, because they will determine the activities you engage in.
2. Your health. Give some thought to the principles of healthy aging—both physically and mentally. Understand that your mental health is connected to your attitude. That means it’s good to be excited about retirement. Consider how you’ll feel about this next phase of life and what you need to do to stay positive and healthy.
3. Your work. Retirement doesn’t have to mean not working. It can mean you change the work you do, perhaps taking on more volunteer work. It’s important to remain actively engaged in pursuits that matter to you. Plan ahead to do the kinds of things that will make you want to get out of bed and enjoy the day. Think of it as using work as a break from leisure.
4. Your relationships. Relationships are the key to longevity, so work now on strengthening yours. Think about how you can build (or enhance) an active social network, and continue to add new people to your network. Nurture the relationships that you have. Make sure your family relationships are as supportive as they can be.
5. Your leisure. This is the area most people tend to focus on and plan for. We recommend a “balanced leisure” approach that allows for adequate attention to physical activity, social interaction, creative expression, meditation and health issues. How will you spend your time to create the right balance?
6. Your accommodation. Plan ahead to make your home suit your retirement lifestyle. Think about how your needs will change over time. Realize that it’s possible to get “locked” into a home that no longer suits your needs. Instead, ask yourself: How can I be flexible? For example, do I really want to live in a big house, with a yard and a driveway that need regular maintenance, when I mainly want to travel?
7. Your financial comfort. Finally, you want to feel comfortable about your money and the financial strategy you’ve put together. This is where your advisor can really help you. You’ll want to have an income plan, a tax plan, an insurance plan and estate plans. Having access to a team of diverse experts through your advisor becomes very important, both for practical reasons and peace of mind.