Essential pre-retirement planning checklist for a smooth transition

APPROACHING retirement is a significant milestone that requires careful and holistic planning. One of the best ways to ensure nothing is overlooked is to create a retirement checklist.

- SHERRY TAPFUMA

Below are some key items to include on your list as you prepare for this major life transition.

Inventory of assets: Start by compiling a complete inventory of your assets, categorising them by type: retirement funds, business interests, discretionary investments, property, trust assets, and so on. Include their current values, locations, and ownership structures, especially where trusts or companies are involved. This will give you a clear picture of your wealth and help ensure your planning is tax-efficient and aligned with your retirement goals.

Planned retirement date: Have a planned retirement date in mind, but remain flexible. Avoid committing to retirement before confirming that you can afford it. Once you start drawing from your investments, reversing shortfalls is difficult and may require you to take on more investment risk or cut back on spending. Consider a phased approach to retirement, gradually transitioning from full-time work to full-time retirement.

Debt elimination plan: Aim to retire debt-free. List all your current debts and develop a strategy to settle them before retiring. If you have a home loan, assess how best to pay it off without triggering unnecessary tax or depleting your discretionary capital.