When the word retirement comes to mind, it is hard not to conjure positive imagery of a carefree lifestyle, with the ability to do whatever you want, whenever you want. And while such a retirement will look different for everyone, the only way to ensure a pathway towards living a retired lifestyle of your choosing is to plan ahead.

The current volatility in the economy and investment markets is a timely reminder that while these two factors are key to how an investment portfolio performs, they are largely out of our control. A successful retirement plan is not entirely dependent on these factors but also takes into account mitigating other risk factors that are within our control.

When planning for your retirement and setting an asset allocation that will help you achieve your goals, make sure you have you taken into account the following.

How healthy are you?

It is inevitable that our health gradually deteriorates as we get older. So even if you are a generally healthy person, it would be prudent to take into account expenses that you might incur if and when health issues crop up, especially if there are known issues in your family's medical history.

We are living longer

Year after the year the Australian Bureau of Statistics tells us that we are living longer than ever. The average Australian male is expected to live past 81 while females now have a life expectancy of 85 years and more. Assuming the average Australian retires at 55, your retirement savings will need to last you at least 26 years, and if you're lucky to live a long life, up to 40 years. And if you plan to retire earlier, that savings figure should be even larger.

Funeral expenses

Funeral expenses are not top of mind when planning for retirement but if you want to shield your family from paying for your funeral costs, then including them in your retirement plan is the easiest way to do that. This is also a good time to think about your estate plan and how you want your assets and other affairs to be dealt with when you pass away. A good estate plan will also take into account your wishes if you become unable to make your own decisions.

While the swings in the financial markets alongside rising living costs might feel uncomfortable right now, remember that short-term market volatility is unlikely to impact long-term performance. Putting in place strategies to mitigate risks that you might face, and planning ahead, will go a long way in helping you live the life you want when it is time to retire.

If you are feeling particularly uncertain about how health and retirement expenses can affect your life post-work, consider consulting a trusted financial adviser who can not only help you walk through Vanguard's retirement planning framework, accommodate potential costs, but provide you peace of mind as well.