How to prepare for retirement

How to prepare for retirement

Retirement is an important phase of life that you should prepare for early on. Proper planning can help you enjoy this new phase of your life to the fullest. In this article we will show you how to prepare for retirement.

Financial preparations

Financial preparation for retirement is critical. This includes reviewing your retirement benefits, creating an emergency fund, and creating a retirement budget. Consider whether you would like to invest additionally in a private pension plan to secure your standard of living in retirement.

Early planning for retirement

It is advisable to start thinking about pensions early on. Find out about your pension entitlements and check whether it makes sense to make voluntary contributions to pension insurance. This way you can top up your pension.

Set up emergency funds

An emergency fund is important to cover unforeseen expenses in retirement. Experts recommend setting aside three to six monthly expenses to bridge financial bottlenecks.

Create a budget for retirement

Create a budget that takes into account your expected expenses in retirement. Think about living expenses, healthcare costs, travel and other activities you want to do in retirement. A well-thought-out budget will help you make the most of your financial resources.

Check private pension plans

Consider whether you would like to invest additionally in a private pension plan, e.g. in the form of a Riester pension or a company pension plan. Such additional provision can help secure your standard of living in retirement.

Health care

Health care is another important aspect of preparing for retirement. This includes insurance in the event of illness, planning for health expenses and creating a healthy lifestyle.

Check health insurance

Find out about your health insurance options in retirement. If you have statutory health insurance, check whether you can switch to pensioners' health insurance. Privately insured people should review their insurance policies and adjust them if necessary.

Plan for health expenses

Calculate your expected healthcare expenses in retirement, including medications, doctor's visits and possible nursing care costs. Include these expenses in your retirement budget.

Healthy lifestyle

A healthy lifestyle can help you stay fit and active in retirement. This includes regular exercise, a healthy diet and regular check-ups. Invest in your health to enjoy your retirement to the fullest.

Social preparations

Social preparation for retirement is also important. Activities and social contacts can help enrich retirement and stay mentally active.

Plan activities

Think about what activities you would like to do in retirement, such as traveling, volunteer work, hobbies or further education. Planning activities can help make your retirement meaningful.

Maintain social contacts

Maintain your social contacts because they are particularly important in retirement. Think about how you can maintain your existing friendships and, if necessary, look for new social contacts, for example in clubs or organizations.

Stay mentally active

In order to stay mentally active, it is important to learn new things regularly, even in retirement. Take advantage of further training opportunities, such as adult education courses or online courses, to expand your knowledge and stay mentally fit.

Real estate and living situation

The living situation plays an important role in retirement. Consider whether you want to stay in your current property or whether moving to an age-appropriate living arrangement makes sense.

Check living situation

Consider whether your current living situation is also suitable in retirement. It may make sense to convert the property to make it age-appropriate or to think about moving to a barrier-free apartment or assisted living.

Financing the housing situation

Check your financial options to finance your living situation in retirement. Consider whether it makes sense to sell the property and use the capital released elsewhere.

Create necessary documents

Create important documents in advance, such as a living will, a power of attorney and a will. These documents regulate important matters in an emergency and give you and your relatives security.