2. 1. Be organized.
Prepare for the possibility of a loved one
managing your care by organizing your
financial documents and plans in one
accessible place. Maintain a clear list of
income, expenses, savings, investments,
properties, and debts to facilitate their
decision-making process and ensure
effective care arrangements.
3. 2. Make a will
Ensure your assets go to the right people
by making a will, as dying intestate means
the law dictates how your money is
divided. While you can draft a will
yourself, any errors could invalidate it, so
consider professional assistance; also,
remember to review and update it
regularly to reflect any life changes.
4. 3. Have a What If… meeting
Talk to your family about your wishes for
old age care or in case of incapacity or
death, ensuring everyone is prepared for
the future.
5. 4. Make a living will
After discussing "What If..." scenarios
with your family, create a living will. This
document tells doctors how you want to
be treated if you can't speak for yourself.
6. 5. Organise your power of attorney
Arrange power of attorney early to prevent
complications if you're deemed mentally
incapable later. Without it, managing your
affairs becomes costly and complex for
your loved ones.
7. 6. Set a pension up now!
Secure your retirement with a private
pension aiming for 70-90% of your pre-
retirement income. Begin early
contributions and maintain a high-
interest savings account.
8. 7. Pay off all your debts before you retire
After retirement, paying off debts becomes
harder unless you're well-prepared. Clear
debts beforehand to avoid complications,
especially if debt collectors pursue your
assets during care needs.
9. 8. Plan a budget
Creating a retirement budget is essential.
Consider future activities and expenses to
determine your needs, simplifying
decision-making.
10. 9. Keep working
You don't have to retire at a set age;
consider factors like mental preparedness
and hobbies. Starting hobbies early offers
benefits for staying active both physically
and mentally.
11. 10. Stay healthy
While much of the advice focuses on
finances, it's crucial to consider your
overall well-being. Prioritizing weight
loss, quitting smoking, moderate
drinking, and staying active not only
extends your lifespan to enjoy financial
planning but also enhances
independence and capability.
12. 11. Plan for your needs…before they
become necessary
Avoid stress in old age by addressing your
needs early. Consider downsizing your
home for easier maintenance and
proximity to family for support. These
adjustments can make aging more
manageable and are essential to consider
as retirement approaches.
13. 12. Make friends
As you age, your social connections may
shift, potentially leaving you isolated if
your network relies mainly on work or
family. Take inventory of your
relationships, stay in touch with friends,
and engage in diverse social activities to
expand your social circle and avoid
loneliness in retirement.
14. 13. Stay mentally active
As you age, changing social circles can
lead to isolation if they rely only on work
or family. Stay connected with friends,
diversify activities, and avoid loneliness in
retirement.
15. 14. You can’t control everything
Accept the inevitability of aging and
focus on what you can control. Plan
ahead, then relax and enjoy your senior
years, as you've earned them.
Editor's Notes
Organize your financial documents in one place for potential caretakers, including income, expenses, savings, investments, properties, and debts, to aid decision-making and ensure proper care arrangements.
Make a will to ensure your assets go to your chosen beneficiaries, avoiding intestacy laws. Professional assistance can help avoid errors, and regular updates are important to reflect life changes.
Discuss your wishes for old age care or in case of incapacity or death with your family, overcoming any reluctance. Clarify your preferences in a "what if..." conversation to ensure better preparedness for the future.
Transitioning from a "What If..." meeting, consider creating a living will, a document outlining your medical treatment preferences for situations where you can't communicate them. It ensures your wishes are respected during times of incapacitation.
Arrange power of attorney ahead of time to avoid complications, as you may lose the ability to set it up if deemed lacking mental capacity. While not costly, lacking power of attorney can make managing your affairs more expensive and complex for your loved ones.
Despite doubts about pensions, it's vital to set up a private one to secure your retirement. Experts suggest aiming for 70-90% of your pre-retirement income, so start contributing early and maintain a high-interest savings account for retirement.
After retirement, your ability to pay off debts will be significantly reduced unless you're well-prepared. Clear as many debts as possible beforehand, as they can complicate matters, especially if debt collection agencies pursue your assets when you need care.
Creating a retirement budget is essential for planning your finances. Consider your future activities, hobbies, and expenses to determine your monthly and annual retirement needs, which will simplify your decision-making process.
You're not obligated to retire at a specific age, as it may not suit your circumstances. Consider factors beyond financial readiness, such as mental preparedness and how you'll spend your time, including hobbies, which you might even start before retiring for the added benefits of staying active both physically and mentally.
Focus on your health alongside finances by managing weight, quitting smoking, limiting alcohol, and staying active. These habits extend life, enhance independence, and prolong enjoyment of financial planning.
Plan ahead to reduce stress in old age by addressing your needs early. Consider downsizing your home for easier maintenance and relocating closer to family for support, both of which are crucial decisions as retirement approaches.
As you age, your social circles may change, leading to isolation if they're solely based on work or family. Stay connected with friends, diversify social activities to widen your circle, and prevent loneliness in retirement.
It’s not just your physical health you need to look after either. Keeping mentally alert has a range of proven benefits from staving off depression to delaying/slowing down the onset of dementia.
Finally, you can’t control everything. People get old; it’s an inalienable fact of life and will happen to you. Plan for what you can and then just relax and enjoy your senior years; after all you’ve earnt it!
