New Year’s resolutions are a great way for individuals of all ages to focus on personal growth and improvement, but the types of resolutions people make can differ depending on their stage of life. For pre-retirees (typically those in their 40s-60s) and post-retirees (those over 65), the resolutions might reflect different priorities and life goals.
Popular New Year’s Resolutions for Pre-Retirees:
- Financial Planning and Saving. As retirement approaches, pre-retirees often focus on bolstering their savings. Setting up or increasing contributions into superannuation or personal investments and also creating a more detailed financial plan. A goal of reducing debt or budgeting more effectively may also be included.
- Health and Wellness. Maintaining physical and mental health becomes increasingly important in these years. Resolutions might include committing to regular exercise, eating healthier, and maintaining a consistent sleep schedule. Pre-retirees may also resolve to manage stress more effectively through meditation, yoga, or taking up hobbies that promote relaxation.
- Career Development or Transition. Pre-retirees often focus on advancing in their current career or preparing for a transition to retirement. This could involve seeking new professional skills, networking, or exploring new career opportunities, such as part-time work, consulting, or entrepreneurship. Some may decide to engage in career counselling or a job change to reduce work-related stress or find greater fulfillment before retirement.
- Travel and Experiences. Many pre-retirees resolve to travel more in the years leading up to retirement. This may include setting aside time for vacations, traveling to places on their bucket list, or taking short trips throughout the year to experience new cultures and destinations.
- Volunteerism and Giving Back. Pre-retirees may seek ways to give back to their communities through volunteer work. Setting goals for regular volunteering or donating to causes they care about can create a sense of fulfillment and purpose, particularly as they prepare for more free time in retirement.
Popular New Year’s Resolutions for Post-Retirees:
- Physical Fitness and Mobility. For post-retirees, staying physically active is often a top priority to maintain independence and overall well-being. Resolutions might involve joining a gym, walking more, attending fitness classes tailored to seniors, or engaging in activities like swimming or cycling to maintain strength and flexibility.
- Social Connections. After retiring, maintaining or building social connections can be a crucial resolution. This might include reconnecting with old friends, joining social clubs, attending local meet-ups, or participating in community events to combat loneliness and enhance one’s social life.
- Pursuing Hobbies and Personal Interests. Retirement offers the time and freedom to dive into hobbies that may have been sidelined earlier in life. Post-retirees might resolve to learn new skills, take up painting, writing, gardening, or playing a musical instrument. Some may also want to take up educational classes, like history or languages, or engage in creative outlets such as photography or cooking.
- Cognitive Health. Mental sharpness is just as important as physical health for post-retirees. New Year’s resolutions in this area may involve keeping the brain active through puzzles, reading, or learning new skills. Activities such as attending lectures, taking courses, or playing games like chess can help prevent cognitive decline and maintain mental engagement.
- Living in the Moment. Many post-retirees decide to focus on mindfulness and the enjoyment of life. They may commit to practices like meditation, yoga, or simply spending more time appreciating the present moment. This could involve reducing stress, prioritizing relaxation, and enjoying everyday pleasures such as spending time with family and friends.
The Big One – how are we coping with the house in Retirement?
Is it becoming too much? What are our options for the future.
We have shows saved on our website around these questions.
Re have RFS Aged Care service. ( https://rfsagedcare.com.au/) That is designed to help with exactly these questions.
This is not something most people want to address BUT, would you rather it be your decision or would you prefer that decision to be taken away from you.
In summary, New Year’s resolutions for both pre-retirees and post-retirees often center around health, finances, and personal fulfillment, but the specific goals differ based on their current life circumstances. While pre-retirees tend to focus on financial preparation and career-related goals, post-retirees prioritize maintaining physical and cognitive health, exploring personal interests, and fostering social connections.
Now let us look more specifically at Financial New Years Resolutions
Financial New Year’s resolutions are a great way for individuals to set clear goals for improving their financial well-being in the coming year. Once again, these resolutions will vary depending on whether someone is pre-retiree (typically in their 40s-60s) or post-retiree (over 65). Here’s a breakdown of popular financial resolutions for each group:
Popular Financial New Year’s Resolutions for Pre-Retirees:
- Increase Retirement Savings. As retirement draws closer, many pre-retirees focus on maximizing their retirement savings. This resolution often involves contributing more to retirement accounts like Superannuation, especially if they’ve been under-saving in the past. They may also explore catch-up contributions to boost their retirement funds and get closer to their retirement goal.
- Pay Down Debt. Pre-retirees often have various forms of debt, including mortgages, student loans, credit card balances, or personal loans. One of the most common resolutions is to reduce or eliminate high-interest debt to improve financial security as they approach retirement. This may involve creating a debt repayment plan, refinancing loans, or consolidating debt to lower interest rates.
- Review and Adjust Investments. As pre-retirees near retirement, they may begin reassessing their investment strategy. A popular resolution is to meet with a financial advisor to rebalance their portfolio to ensure it’s aligned with their risk tolerance and retirement goals. This may include moving some assets to lower-risk investments as they approach retirement
- Create or Refine a Retirement Budget. Many pre-retirees set the goal of creating a detailed budget for their retirement years. This includes estimating future expenses (healthcare, travel, leisure, housing, etc.) and finding ways to reduce spending or adjust savings. Pre-retirees may also resolve to track their monthly expenses more diligently to ensure they stay on track for their retirement goals.
- Establish an Emergency Fund. Having an emergency fund is crucial, particularly as pre-retirees approach the phase of life where they no longer have a steady paycheck. Resolutions to build or expand an emergency fund (typically 3-6 months of living expenses) can help provide financial stability in case of unexpected expenses, job loss, or other financial disruptions.
- Insurance. It is also a great time to look into how much you are actually paying out in all those insurances.
Popular Financial New Year’s Resolutions for Post-Retirees:
- Maximize Social Security Benefits. Post-retirees often focus on optimizing their Social Security benefits. This may involve reviewing the best time to start claiming benefits or making sur eyour MyGov details are correct. Yes it is a pain to update.
- Adjust Withdrawal Strategies. After retirement, post-retirees often need to adjust their withdrawal strategies from retirement accounts. A resolution might involve ensuring they are withdrawing funds in a tax-efficient way to preserve their nest egg. This could include reviewing their pension payment amounts, tax strategies, and the overall sustainability of their withdrawal rates.
- Protect Assets and Wealth. Post-retirees may focus on wealth preservation, which could involve looking into long-term care and estate planning . These steps can help protect their assets from unexpected medical expenses or other risks while ensuring their estate is passed on according to their wishes. A common resolution is to meet with an estate planner to update wills or powers of attorney.
- Control Spending. For many post-retirees, living on a fixed income means it’s crucial to maintain control over spending. Setting a resolution to track and manage expenses is common, particularly for those who are adjusting to a retirement income. They might focus on cutting unnecessary expenses, downsizing their living situation, or finding ways to live more frugally without sacrificing quality of life.
- Review Health Care Costs. Healthcare expenses tend to increase in retirement, and managing them becomes a top priority. Post-retirees may resolve to review their cover and potential medical costs. This could also include setting aside money for health-related expenses and preventive care.
- Estate Planning and Legacy Giving. Many post-retirees focus on planning for the future of their estate. They may resolve to review or create their will, consider charitable giving as part of their legacy, or set up a financial trust.
In summary, financial resolutions for pre-retirees and post-retirees focus on stability, growth, and preservation. Pre-retirees are typically concerned with boosting savings, reducing debt, and preparing for retirement by refining investment strategies. Post-retirees often focus on managing their retirement funds more efficiently, optimizing benefits like Social Security, and ensuring that their wealth is protected and passed on according to their wishes. Both groups prioritize creating a more secure financial future, but with different objectives based on their life stages.
Why don’t people stick to their New Years Resolutions?
Many people struggle to stick to their New Year’s resolutions due to a combination of unrealistic expectations, lack of motivation, and poor planning. One of the main reasons people fail to follow through is that their goals are often too vague or overly ambitious. For instance, resolutions like “get fit” or “save money” lack specific actions and measurable milestones, making it difficult to stay focused or track progress. Without clear steps or smaller goals, people can quickly become discouraged when they don’t see immediate results.
Another common factor is the loss of motivation. At the start of the year, people are energized by the idea of change, but this initial enthusiasm can fade as the reality of the effort required to achieve their goals sets in. Life’s everyday demands—work, family, health, and stress—can also take priority, leaving little time or energy to focus on resolutions.
Additionally, many people set resolutions without a well-thought-out plan for how to achieve them. Without a structured strategy, it’s easy to revert to old habits when faced with obstacles. This lack of planning often leads to feelings of frustration and failure, making it more likely that people will abandon their resolutions entirely.
Finally, habits are hard to break, and change takes time. For many, the desire to make a quick transformation is tempting, but real, lasting change requires patience and consistency. When progress is slow, people can become disheartened, ultimately giving up before they see the results they hoped for.
How can a Financial Advisor help?
A financial advisor can play a crucial role in helping you achieve both your financial and broader life goals by creating a personalized plan that aligns with your needs, values, and timeframes.
They bring expertise in areas such as budgeting, saving, investing, and tax strategies, enabling them to craft a comprehensive strategy that maximizes your resources. By understanding your financial situation and goals—whether it’s retiring comfortably, paying off debt, or funding a child’s or grandchild’s education—they can offer tailored advice and develop a roadmap to help you reach those objectives.
Financial advisors can also help you navigate complex financial decisions, such as asset allocation and risk management, which can be overwhelming for many.
Additionally, they can provide ongoing monitoring and adjustments to your plan, ensuring you stay on track even when life circumstances change. Having a financial advisor’s guidance helps you make informed, strategic decisions and provides accountability, which significantly increases your chances of achieving your financial goals. Ultimately, they offer both the knowledge and the structure needed to turn your financial dreams into reality.
Come and meet the team at RFS advice and allow us to help your family move your wealth forward without pressing pause on life.
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