Senior Stress 3 How to Avoid it by Planning Ahead

 In the final installment of our Senior Stress series, we look at how to plan for retirement effectively to try and ensure you suffer from as little stress as possible in the first place. A lack of a retirement plan can just as often be the result of a lack of information and inability to make a decision, rather than a conscious choice not to plan, so first of all – educate yourself about the common myths surrounding retirement savings and the basics of what you’ll need to do.
1. Analyze: bring together all the information you will need, such as your current savings and investments, income, and any financial commitments you might have. Think about your ideal retirement and draw up a budget plan. Take this information to a financial advisor, who will be able to help you put your retirement plan through ‘stress tests’ to see how it will perform in various circumstances, some of which are in your control and some of which are not.
2. Plan: newly armed with your best- and worst- case scenarios for the future, draw up a plan for the here and now. This can include fixes for things the ‘stress tests’ drew attention to, or simple budgeting tips to help you keep on top of your monthly spending. Make sure that your income stream – whether stocks and bonds or annuity and dividends – works for you and mitigates potential stress while still providing you with enough money.
3. Implement: try and stick to your designed plan as closely as possible, and think about how one small change can build up over many years. Having specific goals in retirement – such as a luxury purchase or holiday you factored in at stage 1 – can help to focus your financial frugality in the meantime.
4. Review: regularly take a look at your plan and how things are progressing. Are your savings growing as expected? Has your income reduced for some reason? Adjust your plan to take account of these, and return to stage 3.
This can also be a good opportunity to take a look at your health and think about if you are showing physical signs of stress, which may herald the need for a change.
Changes and transitions in life are always going to come with some stress and worry – but being aware of this is the first step to dealing with it. Being proactive, having a robust plan, and the ability to recognize stress in yourself and others will help you to reduce the impact that stress has on your life, and enable you to live that relaxed and happy retirement you’ve been dreaming about.