Your Pre-Retirement Checklist

Whether you’re planning to take time to travel, to spoil the grandkids or to explore new hobbies, or to give back there’s a lot to look forward to when it comes to retirement. Heaven knows, you’ve earned it! However, as with all big life changes, retirement also brings challenges including navigating a different way of life, finding a new sense of purpose and reassessing your relationship with money.

That’s why it’s time to take charge. Be proactive to ensure that you maximise your retirement benefits and put yourself in the best financial position to start your next chapter. Some choose a more gradual approach to retirement where they slowly reduce their hours before stepping back altogether, to plan and assess the financial and emotional impact, while others make a clean break.

Regardless, formulating a pre-retirement checklist is the best way to manage the transition. Consider the following:

Set a date

Although you may be of a certain age – ahem – ensure you leave your job or company when it’s most advantageous to do so in terms of your overall financial outlook. When it comes to your pension, find out which retirement date is optimal in terms of your age and how long you’ve been at the company to see how this impacts the amount you’re due.

Make a plan
Take a long-term view. The last thing you want is to see your cash unnecessarily depleted. Structure your retirement withdrawal plan up to three years before you retire to limit your tax obligations.

Then, consider how much monthly income you’ll need to live comfortably. Ask your financial advisor for a breakdown of the value of your retirement annuity and/or pension fund and ensure it’s sufficient. Then choose how you’ll receive your payout – either as a lump sum, a monthly annuity or a combination of the two.

Handle your health

With your company no longer assisting with your medical aid costs, and your health needs increasing as you age, speak to your medical aid broker. You may need to move to a higher tier plan, which comes with higher prices. What’s more, many gap cover plans have a cut-off age of 60 or 65, after which membership is no longer permitted so sign up before it’s too late.

Get support

It’s about more than financial advice, having the support of loved ones through retirement is priceless. Consider how your plans will impact their lives, ensure that they’re aware of what’s to come and formulate an estate plan to ensure your preserve your legacy for the next generation.