Planning for retirement is about more than saving money. It’s about creating a life to enjoy once you stop working. Early planning lets you be comfortable and independent for as long as possible. Today, there are plenty of opportunities for older adults. You may prefer living at home or in a continuing care retirement community (CCRC).

This retirement planning guide explores how to create a plan that suits your personal circumstances, care needs and lifestyle preferences.

Why Is Retirement Planning Important?

Retirement planning is important because it gives you more options later in life. Financial preparations give you the means to live more comfortably. You must also consider health care, emotional wellness, social activities and housing.

Consider these pillars of comfortable retirement:

  • Health: Planning your health care can provide peace of mind for you and your family. Consider CCRCs with housing options that change alongside you.
  • Quality of life: The planning you do now can affect your quality of life in the future. Think about activities, hobbies and social events that you want to engage in.
  • Financial independence: Having enough savings to support your lifestyle makes retirement easier. A clear plan lets you align your retirement goals with your financial resources.
  • Social connectivity: Social engagement promotes healthier aging. Remaining engaged lowers the risk of illnesses like dementia, heart disease and strokes.
  • Personal growth: Retirement is a time of exploration. It allows you the freedom to grow and pursue a fulfilling life.
  • Purpose: Work provides many with purpose, but you can still find meaning in retirement. Many people find satisfaction from learning new skills or participating in volunteer work.

Your 8-Step Retirement Planning Guide

A retirement plan is your roadmap for financial stability, emotional well-being and fulfillment. Follow these steps for planning success:

Step 1: Define Your Retirement Vision

The first step in planning for retirement is to visualize the lifestyle you want. Think of the who, what, when, where and why:

  • Who: Decide which people will play a part in your retirement. You may want loved ones nearby. Consider who will take care of you if you experience ill health.
  • What: How you spend your time today may change when you retire. If work is an important part of your life, you may decide to continue in some capacity.
  • When: Set a goal of when you want to retire. Plans can change for financial or unexpected reasons, but it helps to have a timeline.
  • Where: You may prefer to stay home or move to a retirement community. Health care needs, social support and proximity to family can influence this decision.
  • Why: Explore why you will get out of bed every day. What would drive you and fill you with a sense of purpose?

Step 2: Research Retirement Living Options

This stage of retirement planning involves researching and understanding different retirement living options. Take a look at these steps to help you navigate this process:

  1. Assess your needs: Consider where and how you want to live, your health and your social interaction needs.
  2. Explore different options: Compare different housing types. For example, Redstone offers various services and communities that evolve with your care needs.
  3. Set a budget: Your budget should include estimated housing costs, living expenses, upfront costs and health insurance.
  4. Gather information: Research areas to understand the community and proximity to health care facilities.
  5. Schedule visits: Arrange in-person tours or attend events at specific communities. Remember to ask questions about services, activities, health care and fees.
  6. Compare options: Once you have a shortlist, compare the pros and cons for each option.
  7. Review terms: Review contracts or agreements, noting fees, services and policies. You may want to consult a financial planner or attorney.
  8. Make a decision: Take your time to choose where you want to live. If possible, involve family or loved ones in the decision to help you feel more comfortable with your choice.

Step 3: Put a Financial Plan Together

Why is it important to start saving for retirement early? It helps you build a financial cushion to enjoy retirement without stress. Financial planning for retirement sets you up to achieve your lifestyle vision.

The amount you need to save depends on estimated living expenses, health care needs and your desired lifestyle. You can use the replacement rate strategy to estimate how much you should save for retirement. This rate is the percentage of annual pre-retirement income needed to maintain your current lifestyle.

These tips can help you create a financial plan:

  1. Save your pre-tax income: Try to save around 15% of your pre-tax income in a retirement account. This amount may change depending on your circumstances.
  2. Choose your accounts: Options include employer-sponsored accounts like 401(k), individual retirement accounts (IRAs) or self-employed retirement plans.
  3. Prioritize retirement contributions: Decide how to divide your money. For example, you may want to match your employer’s 401(k) contributions.
  4. Check your social security: Create a personal account on the Social Security website. Check that they have a true account of your earnings.
  5. Save more over time: Increase your savings as you earn higher income or cut expenses. It helps to budget for future financial milestones.
  6. Consult a professional: A financial adviser can tell you if you’re saving enough. They can also recommend ways to achieve your retirement goals.

Review and adjust your plan as income, expenses or market conditions change.

Step 4: Consider Health and Wellness

You can set up a health and wellness strategy by:

  • Assessing your current health: Consider your health status and medical conditions. Review your family history to identify risks.
  • Establishing a budget: Estimate future costs, like premiums or long-term care.
  • Choosing the right health insurance: Understand your options, like Medicare and extra coverage. Prescription drug plans can also help manage medication expenses.
  • Adopt a healthy lifestyle: Go for regular health checkups. Focus on a balanced diet and activities that maintain physical and mental wellness.
  • Plan for long-term care: Research personal support, in-home care or assisted living. At CCRCs, you can choose from varying levels of care that meet you at each stage of your retirement journey. Some also have on-site health care services.

Step 5: Create a Transition Strategy

A transition strategy ensures a clear path into retirement and helps you navigate leaving the workforce. Try planning retirement with a trial period by taking a sabbatical or a long vacation. You can even transition to part-time work.

Step 6: Cultivate Social Networks

Studies show that social interaction increases life satisfaction in older adults. Now is the time to decide how you will maintain social connections.

Here are some ideas for planning social interaction:

  • Join a group: Take part in clubs that align with your interests. You can attend community events or classes to meet like-minded people.
  • Volunteer: Helping others can fill you with purpose. You can connect with people while giving back to the community.
  • Engage with loved ones: Reconnect with old friends, such as former colleagues or classmates, and strengthen relationships with family members who can support you during retirement.
  • Take part in classes: Consider joining a fitness or wellness class for older adults. These environments foster friendships and support a healthy lifestyle.
  • Live in a community: CCRCs provide a sense of community, social interaction and a supportive environment. By encouraging an active lifestyle, CCRCs enhance physical and mental well-being.

Step 7: Communicate Your Plans

Communicate your retirement plans to friends, family and colleagues. Family support is helpful in retirement, so involve them early. Outline your plans, including finances, health care arrangements and goals.

If you are still working, let your employer and colleagues know your retirement plans. Discuss your transition timeline and how it will affect your role and responsibilities.

Step 8: Stay Flexible and Reassess

Life throws curveballs, so staying flexible with retirement plans is crucial. Unexpected changes in health, the economy and needs can affect your goals. Regular reassessments allow you to align with your changing needs and circumstances.

Embrace Your Retirement With Redstone

As a CCRC resident, you can access services that support you throughout your lifetime. Redstone is a CCRC, or Life Plan Community, that has served Westmoreland County since 1980. Our older adult living communities offer various lifestyle options and amenities. Choose an option that suits you, such as an independent villa, maintenance-free living or supportive living.

We welcome you to contact us today to find out more or to schedule a visit to one of our communities.