Whether you’re single, divorced or widowed, planning for a future when you’ve closed the chapter on employment may be even more important than when you’re in a dual-income or two-person household, with unique considerations before and after you retire.
Financial planning expert Annalise De Meillon Muller, head of Technical Support at Glacier by Sanlam, suggests some actions to take to help you get ready for this stage of your life.
- Get a financial adviser. Whether you have a partner or not, the value of an appropriately authorised financial planner, at any stage of your life, cannot be overstated. They are useful to bounce ideas off or to keep a check on your financial decisions. They could help you review your mindset and financial discipline in the context of a holistic financial plan, which includes retirement planning.?
- Consider your future lifestyle. When you retire, will you stop working or will you need to find an additional source of income? Will you consult, or maybe even start a small business? It’s a good opportunity to rethink your vision and goals. Think about where you want to live and what you would like to be able to afford, and more importantly, when you may need to downsize. Don’t wait until you no longer have the strength or the energy for a big change or stressful move. Do it while you’re still in control. Also think about what car you will be driving and how to maintain it, or how you’ll want to get from point A to point B. Importantly, be careful not to try and maintain a lifestyle you simply can’t afford, just to feel socially accepted. This rule applies at any stage of life.?
- Keep healthy habits. Your life expectancy will influence the retirement income solution you choose. It also impacts your medical needs during retirement. Maintaining healthy habits before retirement will benefit you later and will help to avoid extremely high medical costs after retirement that may have an adverse effect on your quality of life.?
- Plan for dependants and emergencies. As a single person, you don’t have the benefit of cost savings from shared living expenses. This means saving requires an even greater focus and/or sacrifice, especially if you have dependants. Access to cash or an emergency fund, retrenchment cover, income replacement cover and disability/dread disease cover are also key, as you don’t have a second income to rely on. Keep your last will and testament up to date to ensure efficient estate planning. It is also very important that someone knows where your personal documentation is filed and what your wishes are, should you fall ill or become incapacitated.
- Have a plan in place. Life happens and we all need help at times. Have an easily accessible list of names and numbers at hand that you can call in the event of an emergency, when you need to recover from an illness, when your car goes in for repairs, or if you need small favours.?
- Stay physically and mentally active. Learn new things, engaging in formal or informal learning, to stay active. This will improve the quality of your life and health, also saving on medical costs in the process. Maintain a support network, try to stay open-minded and curious, and resist becoming set in your ways, as this will help you avoid the dangers of digital fraud highlighted below.?
- Stay connected and up to date with news and technology. The rate of change is ever increasing and being out of touch can dent your confidence – socially, financially as well as technologically. Importantly, watch out for cyber scams. Digital fraud is on the rise and senior citizens are often the victims of these crimes. Learn what to look out for to prevent being tricked.?
- Review your finances annually. Also consider putting a power of attorney in place for when you are no longer capable of taking charge of your affairs during your golden years.
Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.
Sanlam Life Insurance Ltd is a licensed life insurer, financial services provider and registered credit provider (NCRCP43)
