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Carpe Diem!

As we age, it’s easy to focus on how we feel rather than the number of birthdays. Living life to the fullest is essential. Seize the day, as they say! My annual activity planning revolves around which MTB trails I will explore next year, the crazy events I will enter, and the adventures planned with family and like-minded friends. This is all contingent on the fact that I am not injured…

Mountain biking adventures and open water swimming events are typically my focus, and this year I decided to return to skiing after nearly 16 years. I recently celebrated my birthday with a ski trip to the South Island, skiing Mt Hutt with my brother-in-law. All was going well until the weather closed in and an enthusiastic snowboarder crossed my path. The result was a nasty knee injury, so my pursuit of feeling youthful, fit, and agile has been brought back to reality as I began the healing process and then rehab.

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Memento Mori?

This has left me with time on my hands and the realization that the negative aspect of a sometimes “Carpe Diem” approach to life means you can take your eye off the future in a financial sense. Carpe Diem in Latin literally means “pluck the day, trusting as little as possible in the next one,” and comes from the hedonistic philosophy of Epicureanism – a philosophy focusing on pleasure. Whether you are like me and love a good hoon in a youthful moment, or if you fancy a bit of Carpe Diem yourself – perhaps temper that with some Memento Mori – “Remember (that you have) to die.”

There is no doubt that it is important to live life to the fullest and stay active, but it's equally crucial to not lose sight of the future too.

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Have you done enough for your future?

Many New Zealanders are concerned about their retirement. Recent surveys indicate that around 64% of New Zealanders worry they won't be able to afford retirement, and about 70% believe they'll need to work past the age of 65. I have many new clients in their 50s approaching me for advice to determine if they have done enough for their retirement or to find out what they need to do to ensure they can retire at age 65, or if they need to work a little bit longer. Despite these concerns, it's encouraging to see that half of the population is actively saving for retirement, and more people are setting long-term financial goals. However, financial discomfort remains high, especially among those with mortgages and renters.

Lately, more of my clients have been asking: “Have I done enough for retirement, or do I need to work longer?”

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A “New” way to Retire

Retirement isn’t what it used to be. For many of us, 70 is the new 65. We’re living longer, and often, we may not be able to stop fully working, OR we simply don’t want to fully stop working.

The concept of Financial Retirement—working when and how we choose—is becoming more attractive. When work becomes a choice, it becomes more enjoyable and fulfilling.

So, in my advice process, I talk about “Financial Retirement,” which is the age we can stop “working to afford to live” and start choosing to work how and when we want to. Working can keep us active and involved in the community, so we may be trending more towards a retirement of casual or part-time income and away from “no work income” past 65.

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Steps to Stop Fearing Your Retirement, and Start Feeling Good Instead

Regardless of your life stage, ageing, retirement and Memento Mori applies to all of us. A bit of planning while we have the time, resources and health can turn something terrifying into something to look forward to. Here are some general tips. Try committing to one of these at a time as a way to get the ball rolling.

1. Start with a Vision: What does your ideal retirement look like? Whether it’s full-time leisure or part-time work, defining this can give you more control.
2. Understand Your Expenditure: Complete a thorough audit of where your money goes today. Tools like Westpac CashNav, ASB Spend Tracker, or Booster's mybudgetpal make this process easier. Once you know your current living costs, you can estimate how much you’ll need in retirement.
3. Understand Your Income Sources: Assess your current income, how long you want to work, and your entitlements at 65 (like New Zealand Superannuation).
4. Review Your Financial Resources: Take stock of your savings, KiwiSaver, and investments. Ensure you have a diversified portfolio to manage risks.
5. Create a Roadmap: Think of your future like planning your next trail. What experiences do you still want? Adventures, hobbies, travel? Having a plan for these dreams can make the journey enjoyable.

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Ask for Help

Whether you’re just starting to plan your golden years or already on the way, it’s never too late or too soon to set a strategy. Having a clear plan can make the process less stressful, allowing you to continue living fully – seizing the day - knowing your future is secure.

Dean.

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About Dean

Hi everyone! My name is Dean, and I am Financial Adviser and coach. I work with people to help them to achieve their financial goals and assist them to make smarter financial decisions. Drop me a line for a chat and to work through your goals. I work with you to become financially fit and together we create a game plan for your financial future. D.

Disclaimer: Dean Blair (FSP87402) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see our disclosure statement on our website.

Always get professional advice

The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation.  As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures:

https://www.velocityfinancial.co.nz/disclosure-statement.

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