6 retirement tips and trends to consider in 2021
Are you nearing retirement age? Even if you’re not, the years just creep up on you. What’s more, the events of the past year have proved just how unpredictable and uncertain life can be, so it can’t hurt to be prepared for all eventualities, your golden age being one of them. Whether you want to head abroad, remain in a place that’s familiar, or have no idea what you should do, this Pacific Prime Latin America article brings you 6 retirement tips and trends to consider in 2021.
1. Wondering ‘where should I retire in 2021’? Prioritize holistic wellness in your considerations
Traditionally, those deciding where to retire will factor in considerations such as the cost of living, climate, and lifestyle, as well as access to and quality of healthcare, amongst many other factors. How these factors are weighted tends to depend on the individual person(s) and their circumstances. That being said, the COVID-19 pandemic has shown that health matters can’t be taken lightly in 2021 and beyond.
Health goes beyond physical health. In other words, you should consider holistic wellness, which takes into account the entire spectrum of physical, mental, and emotional health. Therefore, go for a place that has appropriate recreational facilities, community-based interest clubs, lifelong learning programs, and other necessary support structures. Ask yourself what you truly need to be happy and healthy in your old age, and ensure you look out for that.
2. Unplanned retirement can happen, so make sure you plan for it
Unfortunately, unplanned retirements are a fact of life. Perhaps you’ve been laid off? This happened to scores of individuals in the past year, as the COVID-19 pandemic caused the global economy to take a hit. Or you might not be physically fit to work due to the onset of a health condition? Whatever the case, the key to dealing with unplanned retirement is to make sure you plan for it by striving to be in a good financial position.
Deal with any outstanding debts
Granted, it might not always be possible, but you should aim to pay off any outstanding debts. Try to pay off credit card balances, student loans and car loans, and even mortgages as best as you can and while you still can. This is especially important if you can see yourself retiring within the next 12 months.
Consult a financial planner for sound investment options
It’s even better if you can engage a financial planner. They will be able to help you create a retirement investment plan that fits with your lifestyle and goals. They will tell you how much of your income you should be saving each month, and give you sound investment advice by guiding you to what funds will give you guaranteed returns.
Understand retirement income options
Following on from investing for retirement, it is important for you to understand your retirement income sources and keep an eye out for any financially-savvy options. One example that’s gaining popularity is the ‘Life Rights’ purchase model, allowing retirees to purchase the right to live in a specific unit in a retirement facility for the remainder of their life.
3. Don’t stop working into retirement – working retirees are increasingly common
While you may be retired and may choose to slow down, this doesn’t mean you should completely stop working. Having something productive to do keeps your mind active and the extra income doesn’t hurt either. For instance, a retired teacher could tutor online for a couple of hours each week, while an ex-marketing professional may offer consulting services to small businesses.
You can start by thinking about the skills you have and the kinds of things you would like to get up to. If there are any gaps in your skills, you should also consider brushing up on them ahead of time. Fond of creative writing? Consider joining a creative writers’ workshop. Always had a knack for baking? You could always perfect tactics and sell baked goods at farmer’s markets. The options are indeed endless!
4. ‘Technophobic retirees’ is a thing of the past, so get used to smart homes and telemedicine
Gone are the days when senior citizens would have trouble working technology. Whether it’s video calling loved ones, streaming films, or even ordering groceries online, life is becoming increasingly tech-centric and today’s retirees have to be tech-savvy. What’s more, you can even go a step further and connect all your devices to create a ‘smart home’. This can make everyday living for the elderly a lot easier and fuss-free.
On a similar note, you should also embrace telemedicine and virtual healthcare. This phenomenon has witnessed a surge in popularity amidst the COVID-19 pandemic, but it’s likely here to stay beyond the pandemic as well. Not only does it increase convenience by enabling retirees to access medical advice from the comforts of their homes, but it’s also safer than making trips to healthcare providers where viruses can be rife.
5. Have too much stuff? ‘Smartsizing’ is the new ‘downsizing’
Moving into a retirement estate with years and years of stuff creates unnecessary clutter. As Marie Kondo says, if it doesn’t give you joy, then it’s probably time to get rid of it. But you can go beyond ‘downsizing’ your belongings to ‘smartsizing’ instead. This is a smarter way to know what and how much to chuck away, as you create simplified and well-designed living spaces that are centered on your lifestyle.
The elements of ‘smartsizing’ are:
- Decluttering
- Open-plan living
- Minimalistic design
6. Prepare for healthcare needs via health insurance
Latin American countries such as Panama, Costa Rica, and Mexico tend to top the charts for the best countries to retire in. A big factor in these rankings is the quality and accessibility of healthcare. In fact, healthcare in Latin America is known to be good for retirees, so you probably don’t have much to worry about if you are planning to move to (or stay in) the region. Nevertheless, it might still be worth securing a private health insurance plan anyway.
This is because public healthcare systems in the region (and indeed elsewhere in the world) are more likely to be overcrowded and have long wait times, and you may also face a language barrier if you do not speak the local language. Similarly, while the cost of private healthcare may be relatively affordable, certain procedures and treatments can be quite costly and quickly add up.
Note: Learn more about the healthcare systems in Latin America on Pacific Prime Latin America’s blog. We also have articles specifically on the healthcare system in Mexico, and healthcare for expat retirees in Mexico.
Need help securing robust health insurance solutions? Get in touch with Pacific Prime Latin America today!
Securing health insurance is no easy feat – particularly for retirees, as health insurers often increase an individual’s premiums with age. This is why it is imperative to plan early and secure health insurance. If you opt for an international health insurance plan with lifetime renewability, you can enjoy coverage whenever and wherever you need, including during retirement. Not sure where to begin? Health insurance brokerage Pacific Prime Latin America is at your service.
Already nearing retirement age? Worry not, as we can also help with retirement insurance in Mexico and the Latin America region. Whatever your age, health condition, budget, or personal circumstances, our highly-trained advisors give you unbiased consultation and a plan comparison, so that you can secure the right health insurance solution. What’s more, you’ll get value-added services completely free of charge versus going directly to the insurer.
Contact us today!
With over 5 years of experience in the field, Suphanida spends the majority of her day synthesizing complex pieces of insurance-related information and translating this into easy-to-understand, engaging, and effective content across a variety of media such as articles, infographics, whitepapers, videos, and more.
Suphanida is also responsible for planning and publishing three whitepapers released annually by Pacific Prime: The State of Health Insurance Report, The Cost of Health Insurance Report, and The Global Employee Benefits Trends Report. Additionally, she handles the LinkedIn profiles of Pacific Prime’s Founder and CEO, as well as Global HR Lead.
Suphanida’s strengths lie in her strong research and analytical skills, which she has gained from her BA in Politics from the University of Warwick and Erasmus Mundus Joint MA in Journalism from Aarhus University and City, University of London.
Being of Thai-Indian origin and having lived, studied, and worked in Thailand, the UK, and Denmark, Suphanida also has a unique, multicultural perspective that helps her understand the struggles of expats and globetrotters.
Outside of work, she enjoys traveling to new places and immersing herself in different cultures.
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