Retirement planning, in a financial context, refers to the allocation of savings or revenue for retirement. The goal of retirement planning is to achieve financial independence.
The process of retirement planning aims to:
- Assess readiness-to-retire given a desired retirement age and lifestyle, i.e., whether one has enough money to retire
- Identify actions to improve readiness-to-retire
- Acquire financial planning knowledge
- Encourage saving practices
Obtaining a financial plan
Producers such as a financial planner or financial adviser can help clients develop retirement plans, where compensation is either fee-based or commissioned contingent on product sale. Such an arrangement is sometimes viewed as in conflict with a consumer’s interest, and that the advice rendered cannot be without bias, or at a cost that justifies its value. Consumers can now elect a do it yourself (DIY) approach. For example, retirement web-tools in the form of a calculator, mathematical model or decision support system are available online. A web-based tool that allows client to fully plan, without human intervention, might be considered a producer. Key motivations of the DIY trend are many of the same arguments for lean manufacturing, a constructive alteration of the relationship between producer and consumer.
- Preparing working environment.
- Prepare mentally and plan to involve in hobbies and develop new interests to be engaged with retirement life.
- Plan and prepare for the transition impact of retirement with home life.
- Plan how active you want to be when you reach retirement age, engage in part-time, contract work or in activities that doesn’t overextend oneself.
- Stay connected with the community.
- Learning to appreciate leisure, moderating work-life balance and to say no without regrets.