Personal Finance

How Investors Can Identify Retirement Goals

By Steven LaFleur

Even if you are 25 years old, you are not too young to begin thinking about your ideal retirement. Saving early for retirement will dramatically increase the amount of money you have when you retire. You will also be able to identify your retirement goals so you know how much money you’ll need to reach them.

Most people have a general idea of what they want retirement to look like but very few of them have concrete goals, or more importantly, a plan for how to get there. There is a huge gap when it comes to actual, identifiable retirement goals. if you haven't yet identified specific goals for your retirement and created a plan to get there, here are some tips to get you started:

Identify Your Own Version of Retirement Success

People who have the most success in retirement are the ones who have their own unique vision of success. They know themselves and understand what makes them happy and how they enjoy spending time. They are aware of how much leisure time is too much and are cognizant of what is worth spending hard-earned money on and what is not. It’s never too late to really get to know yourself—both as an individual and as part of a couple. Not only will this help you in identifying retirement goals, it will also help you live a more fulfilling and meaningful life in the present. (For related reading, see: Setting Retirement Goals: What's Your Number?)

Envision Your Future Daily Life

When many people think of retirement, they focus on the big things: finally taking that European vacation or being able to fund their grandkids’ educations. However, few think about what daily life will look like. How do they envision spending a normal Tuesday in retirement when they no longer have to go to the office? If you don’t think about and plan for these things, you might find yourself at loose ends and anxious when the day finally arrives. This is where hobbies and personal enrichment become very important. If you don’t have personally fulfilling ways to spend your time in retirement, you can easily become bored or even depressed.

Create a Wishlist of Big Goals

Of course, planning that European vacation and funding your grandkids’ education is important as well. In addition to thinking about daily life, make a wish list of big goals you and your spouse have. Whether that’s wintering in Florida or selling the house to buy an RV and travel the country, knowing your big goals is crucial to proper planning.

Make It a Reality

Now that you know what your ideal retirement looks like, you can adjust your savings to make it a reality. If you’re already reaching retirement age and don’t have enough to fund all your goals, you may need to look at making changes to your current financial plan. An ideal retirement looks different for everyone. Identifying what constitutes a truly fulfilling and happy retirement for you is all about focusing on daily life as well as big goals.

(For more from this author, see: Investing in Stocks May Help You Retire Early.)

This article was originally published on Investopedia.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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