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Financial freedom and retirement

Are you future ready?

If you are not ready for retirement, it becomes a curse. Your goal should be financial freedom either before or on retirement. You do this by future-proofing tomorrow.

Financial freedom generally means having enough savings, investments, and cash on hand to afford the lifestyle we want for ourselves and our families. This can be the goal before or on retirement.

In the uncertain and disruptive world of today, we all need to future-proof tomorrow. This means protecting yourself and your family and preserving and growing wealth to maintain your lifestyle now and into the future.

The challenges of retirement

1. Average life expectancy continues to rise

They say the new 70 is 60 and the new 50 is 40 and so on. What an opportunity to have the time to do all those things we dream about – if you have an income/pension that is:

  • Sufficient today;
  • That will retain its purchasing power (if your wealth-income is largely in a soft currency).

In short, do not plan for an average life expectancy, plan for more.

2. You can’t work forever

You might be defiant and think you can work until the day you drop, and for some, that may be the dream. But the fact is you can’t work or perform your profession at a high level for your entire life – irrespective of whether technology keeps us healthy for longer and we enjoy a greater quality of life (assuming you can afford it).

3. Globalisation and relocation

Increasingly, friends and family are scattering across the globe as work and lifestyle opportunities are pursued. With children living in different cities and countries, living with them on retirement is a fading option.

With this uncertainty and disruption, retirement planning needs to be flexible and global in outlook.

Retirement and relocation: A chance to redesign your life into something new and different if you plan for it.

If you are not ready for retirement it becomes a curse. If you wish to relocate, be ready. When the ‘lights are already switched off’ it’s too late.

 

4. Do you have a ‘Plan B?’

Surveys conducted indicate that at the very least personal safety and security, quality healthcare and attractive lifestyles are the leading factors that revolve around a satisfying, rewarding and sustainable semi- or retired experience. If you live in a country wherein the picture for the next 20 to 30 years seems uncertain, then the right to live in a first-world country should be an option to implement now or in the future.

5. Future-proof tomorrow

Today it is all roses and wine. Then something often out of our control occurs. I am 40 and I want to retire at 70. It sounds like one has plenty of time – not true,. Today you have 360 paydays; next month you have 359! The ant eats the elephant in small bites. Retirement planning is exactly that: baby steps resulting in a future-proofed tomorrow.

The longer you do not plan for retirement, the bigger the problems become. Waiting for the ‘the big payday’ or ‘winning lottery ticket’ is not planning. Do something today, however small, and stick with it.

6. These are points you should be mulling over: (CNBC 2019)

  • An active, satisfying, and happy retirement involves more than having adequate savings. It also entails interesting leisure activities, creative pursuits, and mental and physical well-being.
  • You can supplement retirement savings and help stretch what you have already put away by working a little longer, or part-time in retirement, in a profession or hobby you love.
  • Write down exactly what you want your life to look like during retirement, and develop a plan to make it happen. Share this with your partner – it is a joint picture.

If you live in a soft currency country, then take steps to earn hard currency passive income. Without the latter, you will be poorer every year. That is not a maybe – it’s a certainty.

ADVISOR PROFILE

Costas Souris

Quality Group SA

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