How to plan for retirement through all your life stages

Retirement planning is essential at every stage of your life, but the focus will evolve as your circumstances change. This means it will need attention throughout your lifetime because as your life changes, your retirement planning needs will also change.

You must also bear in mind that several factors have impacted human longevity over time, which means we are living longer, Robyn Laubscher, advice and product specialist at PSG Wealth, says.

“Increased longevity requires a thoughtful, flexible retirement plan that anticipates not only a longer life but also the changing needs and challenges that come with it.”

ALSO READ: The three phases of retirement and how to maintain your quality of life

Laubscher says you should consider these aspects at the different stages of your lifetime:

At the beginning of your career

• Start saving early: Compound interest benefits those who start saving sooner and even small, consistent contributions can grow significantly over time.
• Employer contributions: Take full advantage of employer retirement plans.
• Develop budgeting habits: This skill set will stand you in good stead as good spending habits allow you to save more and will help you to achieve your goals throughout your life.
• Invest in growth assets: With many years until retirement, focus on growth-orientated investments that offer higher potential returns.
• Use the most appropriate products: There are many product options available to investors and therefore you must ensure that you get financial advice to assist you in making the right decisions from the start.

ALSO READ: Planning for retirement? Consider these key risks

Getting married and starting a family

• Reassess your investments: With additional family obligations, which may also include homeownership, consider a diversified portfolio that balances growth and stability.
• Plan for education costs: Make sure that you balance your retirement savings with other financial obligations like saving for your children’s education, rather than sacrificing saving for retirement entirely.
• Review your insurance needs: Ensure that you protect your family’s financial future with adequate life and disability insurance.

ALSO READ: Older people are returning to work as unretirement trend grows

When you successful mid-career

• Reassess your risk tolerance: Adjust your portfolio so that it is aligned with your goals and objectives.
• Estimate your retirement expenses: Assess the lifestyle you envision and anticipate any large costs you may encounter, such as medical or travel expenses.
• Plan for healthcare: Consider what healthcare insurance needs you have and bear in mind that healthcare needs generally increase in retirement.

Approaching retirement

• Consider your retirement budget: Estimate the income you will need to cover your retirement expenses.
• Plan withdrawal strategies that are aligned to your goals and objectives.

ALSO READ: Two-pot retirement system: changing retirement saving in 2024

When you retire

• Monitor your spending: Stick to your budget and be mindful of withdrawals to avoid outliving your savings.
• Adjust your investments based on your longevity needs: Be aware that some growth assets may still be necessary to account for inflation and longevity.
• Consider healthcare and estate planning.

ALSO READ: 50 and still haven’t saved? Here’s how to kickstart your retirement plan today

Revisiting your plans over time

Allan Saunders famously said that “Life is what happens while we are busy making other plans.”

Laubscher says therefore it is important to remember to give the necessary attention to what is truly important to you, rather than spending too much time focusing on ‘other plans’.

“Throughout all your life stages it is essential to review your financial plan on a regular basis and ensure that the necessary adjustments are made to align with your goals and objectives. Getting expert advice can certainly be beneficial here, so consider partnering with a financial adviser on your journey.”