When people plan for retirement, their main focus is typically on the amount of money they are putting away so that they can have the certainty of a comfortable life. This is indeed a very important consideration since having more money set aside means that you can have better retirement lifestyle options. However, retirement planning should cover other aspects of your life as well, especially if you’re like many today who started a family late.
So, what other things should your retirement planning cover?
It’s imperative to have sufficient life insurance, apart from the savings that you’ve already tucked away, because you may find yourself in situations that can easily deplete your funds. Say, if you get sick and long-term treatment is required, your medical insurance (which fully covers hospitalization, medication, procurement of necessary medical equipment, and other treatments) will keep you healthy without turning you into a pauper and a financial burden to your family.
While this may seem a little morbid, it’s good to be prepared because it can be a considerable financial and emotional burden to your family if you end up incredibly sick one day. The living will shall serve as instruction for the hospital to obey your wishes regarding life support and treatments.
Will and testament
It should cover the names of guardians for minor children under your care and support (it’s not uncommon to be 65 and still have teenaged children, or to have grandchildren fully dependent on you), as well as instructions in terms of how you want your properties and other assets to be distributed among the family members or organizations you support. It’s never too early to get this done to prevent potential discord among family members.
Powers of attorney
It’s imperative to have another person who can make decisions on your behalf for healthcare and finances should something render you unable to.
Debt management strategy
Retirement planning should always include a solid strategy for getting rid of debt prior to actual retirement. This will ascertain that your family will not have to bear any of your financial accountabilities should something happen to you. Likewise, it will ensure that you have enough capital at your disposal when you do retire. Turn to a financial adviser who can provide effective strategies to pay off your mortgage and other loans.
Retirement planning is not just about you — it also involves the people you love and those who care about you. Go about it thoroughly to ensure that you are adequately covered.