Knowing Your Goals

Some financial advisors suggest planning to need 70-75% of pre-retirement income. This may not be enough to cover traveling or certain hobbies that a retiree would like to get involved in. Consider a normal day before you retire, and how much it costs. Then think about what you would spend doing the things you would rather be doing: traveling to Europe, refurbishing old cars, or shopping. Hobbies and entertainment usually costs money, so planning on spending that kind of money is helpful when planning ahead. Also, you will need to assess the needs that an older person may need someday. Will you need assisted living someday? Will you need constant medical supervision? These are things that should be thought about and planned for, regardless of your current health.

Goals

Goals should be set before retiring so that the financial needs can be assessed and planned for. Once retired, then the retiree should reassess the goals to see if they are still what is wanted or if needs have changed. It is also important to have goals to reach for throughout life. Having something to work towards, whether it be building a boat, refurbishing a car, training for a sport, or any number of goals, can be stimulating to the mind and body and keeps the retiree younger at heart.