Estimated reading time: 11 minutes
Get a realistic perspective on retirement life. Learn about the potential pitfalls and how to prepare for a fulfilling retirement financially.
Too many people emphasize retirement life and how it will be spectacular.
You’re either thrilled about your retirement life today or years into the future.
Is retirement life going to be the time of your life?
We all need to somewhat prepare for this unknown question in advance.
There are so many ways retirement life can go wrong.
As you will read below, a call from my mum and dad was chock-a-block full of questions I had for them.
Oddly enough, retirement is based on money and how much you can save to live your dream life.
Your financial advisor tells you that you will have a million dollars by the time you retire.
Having an income stream for life from investments paired with government pensions sounds fabulous on paper.
All the positives you want to hear about investing while sitting around a pool drinking margaritas.
It’s easy to get caught up in the belief that retirement life will be the best years of your life.
Unfortunately, not considering the negative side of retirement life frankly is scary.
Today, I want to discuss ways retirement life can turn sour and quickly.
Does Life Begin When You Retire?
As much as I want to agree with that question, I cannot since many of us won’t even be around to see our retirement.
Sad. Everything you’ve planned and worked hard for when you retire and are not around.
This is why balancing your life while you can and not waiting until the end is crucial.
With budgeting, this is possible, and it bothers me when people avoid the topic of saving money.
What Is Retirement Life?
Retirement life is more than just sleeping in or passing out for afternoon naps whenever you want.
It’s exactly what you dreamed about, minus having to answer to a boss or selling or leaving your business to someone else.
You’re the boss of your life unless something happens that is out of your control.
Your retirement life is about freedom of choice without anyone telling you yes or no.
For many older people, it’s about downsizing and hosting an estate sale to remove their belongings.
These are supposed to be the glory days when all that matters is putting your retirement savings to work.
You’ve planned goals for retirement and invested money for many years, and now you want to use it.
Oh, but wait!
Something has happened, and now your retirement lifestyle plans are on hold.
How Do You Live A Retired Life?
In the past, I’ve wanted to know what retirees do all day, and there’s no definitive answer.
For one, your retired life is personal, meaning you will do what makes you happy.
If getting up early, grabbing a coffee, and going fishing for the day is your thing, you’ll do that.
However, planning road trips or hotel stays in cities you’ve never visited in Canada is another adventure if you have a spouse or partner.
What retired life boils down to is;
- Affordability
- Health
- Passions
For example, my parents officially retired in their 70s in the UK after sitting at home for years.
They didn’t need to home-sit but did it for the extra income and used it as a getaway.
My parents are funny that way but intelligent since they don’t need the cash, so it’s just a perk.
For years, they would travel to Tunisia for a month’s holiday as it was cheap and the people were good to them.
Their passion was to travel to places that were not overwhelming, and they’ve done it.
My mum and dad would tend to the house themselves and create a backyard oasis.
That’s where I got my ideas for building a rock garden for our property.
You’ll find flowers blooming and a quiet space to enjoy morning coffee or afternoon tea.
Living a simple life is where they are because their health is not keeping up.
Retirement Life And Travel Insurance
Unfortunately, both of my parents have had knee operations, and walking is much slower for them.
My dad has also had some heart problems, and all of this combined makes for expensive travel insurance.
Also, my dad told me he didn’t have the energy to pack, fly, and secure the house.
What once was their passion slowly died because getting older doesn’t mean you will be 110%.
My mum told me over the phone that although travelling was in their retirement plans, they couldn’t do it any longer.
Shorter day trips work better for them; as we all know, there are plenty of places to visit in the UK.
Sun Life Go gives people the flexibility to help meet health and financial needs with convenient access to insurance coverage.
So for now, if I want to see my parents, we’ll have to travel to the United Kingdom, which is fine.
Retirement Life Planning And Housing
Mrs. CBB and I have discussed where we want to live when we retire, as most couples do.
We have also tossed into the mix the type of housing we’d want.
As well, what if one of us gets sick and needs in-house medical care, long-term care, retirement lifestyle care, or even worse, death?
These are all things that some people fail to register in their minds when saving money away for retirement investing.
Living the dream with the cash to do so is one thing, but not being able to do so physically is another.
All Canadians must save space in their retirement life dreams for the negatives and the positives.
It’s more about creating that plan B for retirement like you would for budgeting or needing extra cash.
Around two weeks ago, I discovered that my mum and dad had sold their primary residence and were moving.
They will be moving to a home that is one level, so there is no going up and down stairs.
Who wants to move in their 70s?
Not me, which is why it should be considered before you begin your retired life.
When I asked my mum why they sold their house, she convinced me it was for the best.
Below are the general topics we discussed, and I’m happy they are thinking ahead.
- Is your health good enough to go up and down?
- Can you keep up with cleaning the house?
- How much yard maintenance can you do?
- Can you afford people to help take care of your home?
- How much home do you need for two seniors?
- They had far too much stuff and wanted to eliminate almost all of it.
The above topics were what we discussed, and it gave me insight into retirement life.
Although I’m far from retiring, there are things we want to do and need to consider ahead of time.
My parents are moving closer to my sister to have family nearby if they need help.
They are still looking for a retirement home to settle in that they will hopefully stay in forever.
I’m happy they have done this since I’m a power of attorney who believes that less is better.
What Should You Not Do During Retirement Life?
I can think of a few things that retired folks should consider when they retire.
The main considerations are whether there will be enough money and whether they will outlive their savings.
Unfortunately, a million dollars doesn’t go that far, depending on your lifestyle.
Although retirement life should be fun and filled with adventures, it’s easy to go broke fast.
17 Retirement Life Challenges To Consider
Consider the following challenges that could fold or change your retirement plans.
- Blowing your retirement savings on things you don’t need.
- Investments didn’t work out as planned, and you received less.
- Buying expensive cars, trucks, campers, and trailers that don’t fit your retirement lifestyle.
- Not using a senior’s monthly budget to plan with the retirement income you get.
- A mortgage or debts you still need to pay can be stressful (Can You Inherit Debt?)
- Becoming ill and no longer able to care for yourself.
- Modifications to your home to accommodate illness.
- Loss of your driver’s licence due to illness or other reasons.
- Planning Your Funeral or Talk About It (Average Canadian Funeral Costs)
- Not Keeping fit, eating healthy, and socializing causes loneliness.
- Avoiding self-care or how you look and dress (motivate yourself with beauty).
- Neglecting Estate planning, including updating your Will.
- Not understanding all of the available services for seniors in your community.
- Consider health benefits if you have none or for items not covered by the government.
- Not taking advantage of seniors’ discounts and savings is a missed opportunity.
- You outlive your retirement savings.
- One of you passes away, and your spouse is faced with a frozen bank account.
Writing An Online Will In Canada
An Epilogue Will is a simple, fast, and affordable way for Canadians to create their Will and Powers of Attorney online.
Another great online Will Kit provider that is popular in Canada is Canadian Legal Wills.
Bonus: You still need emergency savings when you retire for those times you need fast cash.
Create A Retirement Life Vision Board
I loved this idea when I heard about it because having a vision is better than not knowing your next step.
A retirement life vision board is a window into what you want to do when you retire.
Create a web of ideas on a vision board (whiteboard, corkboard, chalkboard or paper).
Make it colourful and big so you can share your board with your spouse, partner or for yourself.
To created a retirement life vision board you will want to consider the following.
- Pretend you are already retired and use your days off to get a better understanding of what you might do. Don’t call in sick to work, lol. Use a couple of vacation days if you can.
- Make notes about what your typical retirement day might look like using detailed examples such as eating out, hobbies, travelling, road trips. Are there any common adventures you have with your spouse? I’d suggest you both created a retirement life vision board separately.
- On your vision board cut out visions from magazines or flyers. You can even colour your vision board.
- Talk to your parents, neighbours or friends who have already retired for advice.
- What have you always wanted to do but decided to wait until you were retired?
- Do you consider working after you retire? Put it on your vision board.
Adjusting To Retirement Life Takes Time
Retirement life comes with an adjustment period, especially if you’ve been working full-time and are unsure how to spend your days.
For some people, such as my parents, retirement life means picking up side jobs to stay busy.
Other options are to join local seniors’ clubs, try new things, or perhaps start a hobby.
Another consideration is planning a retirement when you have little to no retirement savings.
If you haven’t or couldn’t invest in your retirement, expect to live a simple but fulfilling retirement.
You don’t have to jet away to sunny destinations or own a cottage on the lake to be happy in retirement.
Make the final years the best years of your life by being realistic and having a retirement plan B.
Eventually, it will work itself out, however, keeping your mind busy, physical activity, and doing what you want without breaking limits.
For example, flying all over the world without considering how the expenses will affect your retirement budget,
I hope what I’ve learned from talking to my mum and dad and other retired folks helps give you something to consider before retirement life.
Discussion: Have you considered any negative impacts on your retirement life?
Share your thoughts below.
Mr. CBB
My mom recently passed away. She had her entire funeral paid for prior. This was the best thing that she could have done and has now prompted my husband and myself to create a funeral fund. We are not sure where we would be when we die so may not use our local funeral home. A fund can pay for everything no matter where we are in the world.