You Haven’t Started Planning For Retirement? Have a Comfortable Future With These 10 Retirement Planning Tips
If you haven’t started planning for retirement, you should do so right away. We’ve prepared these ten retirement planning tips and asked current retirees to help in their compilation. Planning for your long term future is crucial; when considering your pension, take on expert advice from a specialist such as Portafina.
1. Look for investments that provide predictable income.
The money required 5 to 10 years into your retirement is most at risk. Therefore, you should avoid overspending, as once that money has gone, it is challenging to recover. Seek out investments that provide a predictable income. However, be aware that these generally offer a lower return.
2. Accept inflation as a given.
Rising prices caused by inflation will erode your retirement fund’s purchasing power. However, you must accept inflation as a fact of life and include it in your retirement planning.
3. Talk through your retirement plans with your partner.
It is crucial to be open and frank with your partner regarding your retirement plans. Talk through your retirement plans as you might discuss any other significant financial decision. Doing so will avoid any uncomfortable conversations down the line.
4. Focus on your health.
Successful retirement planning is not just about creating a healthy financial situation; it also concerns your physical health. Many people fail to factor in health costs in their retirement plans. Consequently, they are shocked when faced with hefty healthcare expenses.
5. Establish a budget and stick with it.
The first step to creating a workable budget is understanding what you are spending. However, many people don’t take the time to calculate what they will spend in retirement. If you are one of these people, you should consider consulting an investment professional. They can help you work out the cost of your retirement lifestyle and what investments you’ll need to pay for it.
6. Find a good investment professional.
Following on from the previous tip, if you require an investment professional, you should find a good one. Consider asking friends or family for their recommendation, as a referral is an excellent way of finding a good investment professional.
7. Limit your travel expenses in retirement.
Travelling tends to become more expensive as you get older. Therefore, you should consider taking any significant trips before you retire. Also, when you do travel during retirement, try to maintain the same spending prudence you would at home.
8. Become mortgage-free.
Having a roof over your head can amount to a significant monthly expense. By becoming mortgage-free, you will not only own your home outright but will also have more disposable income in retirement.
9. Extend your working life.
Perhaps an obvious way to accumulate more money for your retirement is to extend your working life. Doing so may not have factored into your initial retirement plans, but working a few extra years can have significant benefits. Not only will you continue to receive an income, but you will also give your pension additional contributions and years of growth.
10. Anticipate overspending.
Regardless of how much planning you do, the chances are you will overspend. Understanding this and factoring in overspending into your retirement plans will take the sting out of any unexpected costs you encounter. For instance, you should budget for things like repairs, maintenance, and taxes. These things can increase significantly during retirement.
If you haven’t yet started planning for your retirement, you should do so soon. Perhaps a few lifestyle changes, becoming more financially organised, or extending your working life for a few years will be part of your plans. Hopefully, these ten retirement planning tips will set you on a path towards a comfortable retirement.