Are you planning your retirement yet? You may feel that you are too young to think about retirement, or that you don’t need to plan just yet even though you are close to retirement age. If you agree with either of those statements, then unfortunately you are very wrong!
Having the freedom to do what you like, when you like, and how you like is the best thing about retirement. There is no more stress about going off to work and you can sleep in as long as you like! You can read those books that have been sitting on the shelf for years, travel the world, buy that expensive car and, of course, spoil the grandchildren. It all sounds great, but have you thought about how you will pay for your dreams? Many people do not and risk major disappointment when retirement sneaks up on them.
Plan for a Lengthy Retirement
You are likely to be retired as almost as long as you worked. A while back Dr. Oz was on Oprah talking about living past hundred becoming more and more possible. In fact with the advances in science and medicine some people may live to 120 or even 150. You may live another 20, 30, 40 or more years after you retire so you will need money that is going to last for that long. Already more and more seniors are active and lead busy, fulfilling lives.
Start Planning, Budgeting, and Saving Now
Planning and budgeting as well as saving throughout your working life is the
only way to ensure a comfortable and rewarding retirement. Saving money in the bank is a good idea at all times but it should not be your only retirement funding strategy. Because cash erodes over time due to inflation and tax, you need other smarter investments that will earn you more money and make your money work smarter.
Pension and social security schemes are other popular ways that retirees fund their life, but the payments are minimal and certainly do not cover extras like travel and new cars. Ideally you will want to invest in plans that provide tax benefits. 401(k) plans and property and stock investments fit this bill.
Financial Planning After Retirement
Just because you are retired does mean you don’t have to plan, budget, and save. Unexpected illness can erode savings as will careless spending. Curbing some expenses is also a good idea, especially in the initial stages of retirement. You may like to drive your car longer or move into a smaller home or apartment to save on bills and maintenance. All of these steps can contribute to more savings, but only if you actually invest your savings.
Take Full Advantage of the Perks of Retirement
Once you hit retirement age you are entitled to some discounts and benefits in the community. In fact some of the perks start as early as 50. Discounts include health care, prescriptions, public transport, car registration, movie and entertainment tickets, classes, health club memberships and other benefits. Don’t be shy about asking senior discount either.
You don’t have to live so frugally that you can’t enjoy life, but wise spending and saving at any age will ensure a more comfortable retirement.
