5 minute read

What do you think retirement is? How will your life look when you retire? 

Most people think it’ll be a quieter, more peaceful version of the life they live now because, well… By that time, you’re supposed to be settled. The only goal will be to stay healthy and happy, and of course, independent. You’ve worked out the math, and the numbers seem to work. Goodie.

If this is the way you think, stop. 

Why are you assuming that you’ll want the same things you want today, 20 or 30 years in the future? There’s absolutely no way of knowing what your life will look like and what your priorities will be. If you have a plan for retirement, that’s fine, but does the entirety of that plan depend on things staying the way they are now? 

If it does, then you’re in trouble.

The Assumptions People Build Their Retirement Plans Around

Nobody’s trying to suggest that you need to predict your future because that wouldn’t be possible. Of course, you’re basing plans for retirement on assumptions; what else do you have to work with? Assumptions are fine. 

The real problem here is the lack of flexibility these kinds of plans usually have.

The life you live now is your reference point. That’s the only reality you know, so it makes sense. 

You can try to work some potential crises into your plan, but the ones that are harder to predict are the slow ones that creep in without you even being aware of what’s happening before it’s too late. 

When you’re 35, it’s hard to imagine that you might need help with getting out of bed or paying your bills, but that’s a real possibility. But since you can’t see it happening right now, you can’t include it in any plan. You simply don’t know what that looks like.

The plan you have will probably work when you’re 45 or even 65. 

But what if you get sick in your old age and the budget you planned doesn’t cover it? What if the house you’ve worked half of your life to pay off starts causing more issues than anything else? 

If your life falls apart when stuff like this happens, it doesn’t necessarily mean the plan failed, but that it’s not flexible enough (or at all).

Savings, decisions regarding housing, a life insurance policy sale, options for medical insurance, it all has to be part of the conversation on time.

Parts of Retirement That Usually Don’t Stay Exactly as Planned

It’s okay to have a plan. It’s preferable, in fact. But if your plan falls apart, if your life changes at all, then you need a new plan. 

Here are some things that rarely stay the way you thought they would.

Your Health Doesn’t Affect Only Medical Bills

Changes in your health will show up on a medical bill, sure. But they’ll also show up in your daily life in ways you’re probably not expecting. 

Maybe you’ve handled all household chores your entire adult life, but now you get exhausted before you’re even halfway done. Driving at night can be hard or even dangerous once you reach a certain age, so there’s a chance you’ll need help with transportation.

Basically, a lot of health stuff you take for granted when you’re young can disappear when you get old, and good retirement plans take that into consideration.

Your Budget Might Not Suffice

Right now, you kind of have a number in your mind, and you think you’ll need a certain amount of money. 

But unless you’ve been living under a rock, you’ve noticed how inflation, healthcare, repairs, and an increase in the cost of living can affect a budget. What you’ve planned might not be enough. 

What then?

Check your spending habits here and there and correct your future budget according to what’s happening.

The Situation in Your Family Can Change Your Responsibilities

You figure that everything in your family will stay the same, so you plan your retirement with that in mind. But where does it say that nothing will change? 

Real life is unpredictable and messy, and you never know what might happen. 

Your spouse might get sick, your child might move to another continent, your grandparents might need more help, and so on.

The way to work things like this into your plan is to simply talk to your family in an open and honest manner. You’ll never be able to fully predict what can happen, but it helps to have some idea of it.

Conclusion

The thing to take away from all this? 

Rigid plans fall apart every single time. Especially ones that concern the far future. Planning is useful in general, and particularly when it comes to retirement, but you can never plan everything. 

No matter how big a control freak you are, your retirement plan MUST be flexible up to a certain point; otherwise, it’s useless.