How to retire smoothly

FOREWARNED: SIX STEPS TO GETTING READY

- Erin White

Many aspire to retire at 60, hoping to enjoy an active and healthy lifestyle. While early retirement has its appeal, it's crucial to recognise the financial implications of potentially funding a retirement that could span 40 years. This extended period requires careful planning to account for unforeseen circumstances and evolving needs.

Here are six critical considerations to address before retiring:

1. Your post-retirement income When determining an appropriate retirement income, avoid relying on general rules of thumb. Each retiree has unique circumstances that require thorough analysis to establish an income strategy tailored to their needs.

While certain expenses, such as mortgage repayments and retirement contributions, may decrease, it's essential to account for new costs that could arise.

Health care expenses tend to escalate with age and other factors, such as international travel to visit children abroad, could significantly impact your budget.

Notably, travel expenses are often capital outlays and may not be covered by annuity income.