Stepping out of the workforce and into retirement is a bit like setting off on a very long overseas holiday. Once you’ve set sail, it’s hard to get back to where you were and whatever you’ve brought with you is what you have. Too bad if you’ve left something important behind or taken a wrong turn!

Planning a holiday means thinking ahead about the places you want to visit and what you should pack. You’ll need to take enough with you to last the distance and to be prepared for anything that might not go according to plan. Retirement planning is no different. And as with any other journey, a checklist makes planning easier.

What brings you the greatest joy?

Just like planning a holiday, the starting point for a retirement plan is to decide what kind of experience you want. What brings you the greatest joy in life? How do you want to spend your time? Not everyone wants to travel in retirement – some people have already travelled extensively, while others just don’t enjoy it.

Even if travel is high on your list, there are other things that make retirement enjoyable, such as social activities or learning new skills and developing interests and hobbies. Spending time with family and friends is important for most people.

How financially secure are you?

To be certain you have sufficient funds for your retirement, there is no avoiding doing some calculations. This means preparing a budget, based on the kind of retirement lifestyle you want. What are your retirement goals? How comfortable do you want your retirement to be?

Calculate what you could draw in retirement.

Massey University’s Retirement Expenditure Guidelines are a good benchmark for this and will also tell you how much capital you’ll need to cover your budget. You can also use the Lifetime Retirement Income Projection Calculator to see what level of regular income you can expect from the savings you have.

Make sure you are receiving all the financial benefits you are entitled to, such as accommodation supplements, rates rebates, and SuperGold Card discounts.

Where will you live?

Housing is one of the most important determinants of wellbeing in retirement. If you own your home, think carefully about how much of your total wealth is tied up in this asset. Many retirees find themselves ‘asset rich and cash poor’ because most of their wealth is in their home. You can change this by downsizing or moving to another, less expensive area to free up money for your retirement.

If you don’t own a home, finding affordable rental accommodation is essential. Research affordable options – for example, housing provided by central or local government and charitable organisations, or social housing. Your geographic location will also impact your living costs. It is much more expensive to live in a city than in a small town.

Have you prepared your important documents?

You wouldn’t think of going on an extended holiday without your passport, and nor should you embark on your retirement journey without having prepared your important documents – namely, your Will and your Enduring Powers of Attorney (EPA). Without a Will, winding up your estate becomes an expensive, drawn-out process and your assets are distributed according to a formula set out by law.