How to Embrace a Change in Your Retirement Goals
Strategizing for retirement is a lot like preparing for any journey. You begin with a clear destination in mind, plan your route to get there, and depart - but just like a delayed flight, no matter how thoroughly you’ve prepared, things can always change.
Maybe you originally envisioned a quiet life in the countryside, but find yourself drawn more and more to the vibrancy and rush of city living. Or perhaps, health concerns have prompted you to reassess how you want to, or will be able to, spend your golden years. Or maybe you’ve even decided that you want to continue working; after all, 57% of Americans expect to work after retirement.1
No matter the reason your retirement goals have been disrupted, now is the time to get prepared - internally, with regards to your mindset, and externally, working with your financial professional to make sure your financial situation can adapt to the new path you’re charting.
The key to achieving your ideal retirement lies in taking the correct next steps.
Accept That Things Are Changing
The very first step is the easiest: Breathe. It’s important to remember that changing your retirement goals doesn’t mean you’ve failed. On the contrary, it’s a good sign you’re in tune with your wants and needs, and you want to shape a retirement that works for you, not just what you think it should look like.
Take Some Time to Reflect
You’ve been waiting this long for retirement, so there’s no need to rush now. Take the time to thoroughly examine your new priorities.
What has prompted this shift in your retirement goals? Is it a newfound passion, a change in health, a desire to be closer to family, or something else entirely? Maybe it’s as simple as choosing a cheaper lifestyle for the financial confidence that your savings and income in retirement stretch as far as you need, regardless of economic changes.
Understanding the root cause will help you have productive conversations with your financial professional, and make more informed decisions moving forward.
Review Your Finances
Changing your ultimate goals for retirement will inevitably have financial implications, particularly if they involve a different lifestyle, location, or activities. Once you feel confident in your decision, it’s critical to arrange a consultation with your financial professional to understand how these changes might impact your savings, investments, and retirement income.
This will also provide a convenient opportunity for a “check-up” on your current financial situation and prepare for any adjustments you may need to make now.
Adjust Your Retirement Strategy
Once you’ve reassessed your financial situation in light of your new priorities, it's time to adjust your retirement strategy accordingly. This might involve updating your retirement budget, reallocating investments, or exploring new income streams. Be flexible and open to making changes that align with your revised goals.
A retirement strategy that set you up for success for one destination may cause you to fall short for another. Conversely, switching to a more economical long-term plan may allow you to deal with a more immediate need, such as medical bills, to avoid trouble in the future. Your financial professional is here to guide you through the process.
Communicate with Loved Ones
While retirement is your own journey, as they say, “no man is an island.” Your goals are likely to affect others as well, so it’s important to communicate them openly with your loved ones.
Of course, you will want to ensure that you and your spouse are on the same page. You should also discuss your plans with other members of your family, especially if you plan on relocating, and close friends with whom you want to stay in touch. Opening yourself up to their support and understanding can make the transition into retirement that much smoother.
Stay Flexible and Prioritize Your Health
As you navigate these uncertain waters and chart your new path towards retirement, remember that life is unpredictable. Even these new strategies do not have to be set in stone and may need to be adjusted along the way. Embrace the journey and be open to new opportunities that may arise.
Even if this is a drastic shift in your retirement goals, you cannot allow yourself to be overwhelmed by stress and anxiety over the future. Now, more than ever, it is crucial to prioritize your health and wellness.
On a practical level, make sure you and your financial professional include healthcare costs and considerations in your revised retirement strategy. On a personal level, try to stay active, eat well, and attend regular check-ups to ensure you can fully enjoy your retirement years.
Experience the Journey
In the end, retirement is not just about reaching a destination; it's about enjoying the journey. Life is full of twists and turns, and our goals and aspirations will naturally evolve over time.
Be confidently assertive in your wants and needs, and remember that your financial professional can serve as an invaluable resource for knowledge and objective insight as you plot the course toward your new retirement destination.
By staying adaptable, proactive, and true to your passions, you can create a retirement that reflects the life you want to live.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
