The DO’s and DONT’s During retirement

Retirement is a phenomenon that every employee blessed to live long will have to get into it. Depending on the rules of individual countries, the retirement age can be 70 years, some are 60 years, and some are 55 years, but regardless of the age rule, it is worth noting that retirement is actual and is there.  Thus, planning to get there is not an option but a must. In so doing, you need to understand your time horizon. You need to know the number of years left behind and the kind of strategy that best fits your situation. Knowing things to avoid during retirement can be an input for those in the process of planning their retirement. This article, therefore, shares six (6) items to avoid during retirement. We may term this items as the DON’TS ITEMS DURING RETIREMENT.

Experienced people urge the retirees not to do the following things as they can accelerate the death of the retiree.

Pension Fund as the sole source of income

Many potential retirees do not plan for their retirement life because they have their monthly pension payments in place. Experience has shown that many people who lived solely on their monthly pensions ended dying 3 to 5 years after retirement.  It is worth noting that even after retirement, life continuous normally; inflation usually goes up, as you grow old, you become a point of attention for diseases.  Thus, it is dangerous depending solely on monthly pensions, which are static. As a result, most retirees die from high blood pressure within 3 to 5 years and hardly ten years. Potential retirees, therefore, should start making strategies for opportunities to get cash flow from sources other than the monthly pensions. If appropriately planned, it is possible to live for more than 20 to 30 years after retirement.

Children as life determinants for a retiree

You might have been invested highly in your children’s education on the account that they will take care of you during retirement. Fine, it is good and is a parental responsibility to ensure good education for the children. However, it is worth remembering that paying for children’s education should not be considered an investment. Some people say that life events have overtaken depending on children. People say further that children’s education is a responsibility, but your retirement plan is a priority.

It is worth remembering that your children’s life may not be the same as the life you lived at your time. Things have changed, living costs have gone up, lifestyles have changed, and unemployment has become a typical character. If parents have not adequately planned for their retirement life, it will be hard on the children. Hence, plan your retirement life now to maintain a good relationship with your children and live long.

Investment in Small Financial Institutions

Many small financial institutions are in place worldwide, and they stand making people believe that if you invest with them, you will get a regular high return of investment. Parking your money in small financial institutions is the most increased risk investment ever. Small financial institutions have an increased risk of bankruptcy, a situation that will affect your cash directly. It is natural that if you find the place you have trusted is bankrupt, what follows is for you to die. So avoid parking all your money in these small financial institutions.

Not Having Health Insurance During Retirement Life

Buy your health insurance before retirement to avoid inconveniences during retirement. As said before, that as you grow old, diseases are common; thus, your treatment bills during retirement are higher than before. If you have your health insurance, you ensure proper treatment even if you retire. Some may decide to buy health insurance after retirement. Fine, but it is also a risk because some insurance companies allow the use of the health insurance after some months or even a year, an act that is risky for your life if you encounter a severe disease during retirement.

Buying Properties Using your Retirement Monies

It is a common understanding that investment in real estate is amongst the safest investment. However, investment in real estate requires a considerable sum of money which may eat a significant part of your retirement lump sum. Return on investment in real estate takes a long time to mature; hence starting the investment while already retired may not be for a retiree. You may buy a property to get monthly rent, and all to find that you have no tenants. You may end up frustrated, stressed, and die before time. Some would like to buy for resale, OK, but remember that you are getting older day after day; you may not be able to get a buyer at the time when you need money most. Real estate/ properties are not readily convertible to cash. Remember that as you grow old, buyers may take advantage of you and think that you are desperate; hence, offer you meager prices. If you plan to venture into the real estate business, start before your retirement. Please, undertake an early plan for your retirement.

Staying in isolated places

Experience has shown that many people plan to stay in distant and isolated places to get big plots to do many things. However, it would help if you remembered that you may need other people’s help as you get old now and then. You should thus live in a place where there is access to roads, where other people surround you, and where people can hear your voice if you need help. Thus planning for a place to stay after retirement is a no-miss item.  

One of the main challenge that most retirees face s lack of sustainable cash flow, stress due to the fact that some of the plans are not going as planned. The to do list embraces those items which are prohibited but now twisted in another way around.

Due to its importance, all the above items are set in a Do not manner We urge the potential retirees and those retired to consider changing all the manners in such a way that we can get the Do’s.