Wei Woo from Research Capital has shared his latest blog with us. As an industry leader, Wei provides so many great tips and information for the retired and those planning for retirement. This month Wei Shares tips about creating a Plan B retirement plan. Life doesn’t always go the way we plan. Read on for more information.
Retirement is a time many of us look forward to, but sometimes our vision of how it will be doesn’t match the reality. A lot of things can affect this, like money problems, family issues, or unexpected events we can’t control, such as Covid lockdowns. Since retirement can last for decades, it’s essential to stay flexible with our financial plans as the world changes quickly.
Imagine you’ve been retired for a few years and excited about this new phase of life, but suddenly, you must take care of a sick loved one. Your retirement plans may have to take a backseat as you become a caregiver. And by the time you’re done, your own health might suffer, making it hard to do the things you love, like traveling.
What if something happened to your health or the health of someone you love? How would it change your retirement expectations? These situations have been happening for a long time. Now, let’s talk about two more recent challenges.
One problem is the rising mortgage interest rates. Even if you have your house paid off, your children might not. They could struggle to make their mortgage payments with the increasing rates. With an expected 20 to 40% increase in monthly mortgage payments upon renewal over the next 3 years, your children may be panicking about not being able to make their next mortgage payment. Some retirees find themselves having to sacrifice their travel and retirement funds to help their kids out.
Climate change is another issue. Extreme heatwaves and floods around the world can affect your travel plans and even put your health at risk. Popular tourist spots like Rhodes in Greece have faced evacuations due to wildfires, leaving people disappointed that their retirement plans didn’t turn out as they hoped.
Money is just one part of a retirement plan, and unforeseen circumstances can disrupt it. That’s why it’s important to have a backup plan (Plan B). We should aim to keep our choices, control, and independence for as long as possible during retirement. As life changes, so should our plans, helping us enjoy a purposeful retirement.
We want to thank Wei Woo for sharing his knowledge. Click on the button below and download more information about Creating a Plan B
