Whether you’re 55 or 70, taking the decision to retire marks an important milestone in your life. After years of hard work and careful planning, you’re now ready to go out in style and enjoy the best years of your life in comfort, doing all the things you dreamed of during those long hours at the office. To ensure that your retirement is nothing but a pleasant experience, you’ll to make sure that you’ve answered the following questions:
Does your retirement income equal your last salary?
A good retirement is one that doesn’t require you to take a drop in living standards – after all, you’ve worked hard to ensure your quality of life after retirement.
To ensure that your quality of life will be maintained after you retire, speak to your financial advisor and confirm that your retirement income will at least equal your last monthly salary. That way, you’ll be able to enjoy your life as a retired person while making small monthly contributions to your retirement capital to guard against inflation.
Are your taxes in order?
The last thing any retiree wants to deal with is a large bill from SARS. To avoid any complications, you’ll need to ensure that your tax affairs are in order well in advance of your retirement. Your financial advisor or accountant should be able to make the necessary enquiries and advise you on any steps you’ll need to take before you retire.
Are you debt-free?
Retirement should be a financial clean slate, free from the usual debt burdens that you carried as a working person. Before you retire, try to ensure that all your debt is paid off – from your bond to any small debts like credit cards and retail accounts.
Are you ready to retire?
Finally, it’s important to decide whether you are ready to stop working. Although you may be in a good financial position to retire, the change in your life will be significant and you should decide whether you are ready to make the necessary adjustments. If you’re still keen to be involved in your profession, a part-time position or consulting work is an excellent source of income with flexible hours, and your years of experience will be of value to any business.