Retirement is the golden finish line that we all aim for in life. Once we hit 18 and go to college, the hard work begins and you spend the next forty years of life building a career, building a successful financial future for yourself and it’s all for those years you can spend away from working. Preparing for retirement isn’t just an emotional thing, either. You have to think about your retirement from the minute you start working in a financial sense. If you retire at 60 years of age, but you don’t pass away until you are 90, you have to ensure you are financially secure for a part of your life where working may not be suitable for you any longer.
The transition from working to taking that step back and retiring should be an exciting one. It should be filled with family time and holidays you never got the chance to take. While you’re doing those things, you should be comfortable and secure with your home and bills so that you aren’t worrying about covering the mortgage. Ideally, your house will be paid off and not cost you anything in your retirement years, but for some this isn’t a possibility. There are many ways that you can get financially prepared for retirement, and if you are planning for your future early enough, you can retire comfortably. Don’t be that person who starts their working life not thinking about what will happen later on. It may be forty years away, but the things you do right now, today, will be what matters. So, what can you do for yourself so that you aren’t going to be stuck when you can finally stop that nine to five routine?
Savings. Part of your monthly expenses from the moment that you get your first job should include savings. We all like to save for houses, cars and weddings but you should be putting something aside each month to go towards those years after your income stops. If possible, have six months of savings at a minimum so that if there are delays with pension plans from private pots or the government, you are covered. You can convert your savings into income over time by buying investment properties with Assetz Property and owning several homes. By having tenants in to pay the mortgage for you, these can be paid off faster and therefore be a sole source of income when you hit retirement age.
Budget. You should know what your monthly expenses are each month so you can set a budget for your retirement. If your mortgage is paid off, you’ll need to be able to cover the bills and knowing how much you need each month will help you prepare. Analyse your expenses and work out exactly what you need to live on for the basics. If you then have any money in addition to that, you can live fairly comfortably in your retirement, meaning you don’t have to choose between heating or eating, which is something lots of pensioners face.
Debt. It’s rare for someone to get through their whole life without accruing some kind of debt somewhere. Credit cards, loans and mortgages all count under the umbrella of debts and paying these off as early as possible will mean you’re not busting into your retirement income to pay things off before your time comes. Your debt then will not pass to a spouse and you won’t have to worry about leaving trouble behind you.
Benefits. You need to look into what benefits are on offer where you are. Your government may have many retirement schemes available to you and you wouldn’t know about it! Hopefully, you have income from properties and more than one pension pot, but it’s always worth looking into what benefits you can get as a pensioner.
Funeral. There are only two sure things in life and those are death and taxes. Early in your career, you should plan and pay for your funeral so that when the inevitable happens, you are already covered. It’s not the nicest thing to have to plan, but being practical, funerals are expensive. Your income in your retirement may be limited and the last thing you will want to do is spend what money you do have on your death.
Pension. Your pension is going to take over from your working income once you have retired. Ideally, you’ll have a government pension as a fall back, but if not you need to think about a private pension. Many people have both, so that they can boost their income in the later years of their life. Getting some advice from pension advisors is one way to ensure you are paying your money into the best plan available for you. You need to understand that your pension is a huge decision and they are irrevocable. This means that once you’ve made a decision you cannot change your mind. You also cannot access your pension fund until retirement age, making it essential to ensure that you pay in as much as you can for as long as you can.
Will. Everyone needs to ensure that they have a will ready for retirement age, especially if you have big assets like houses. Taking advice from lawyers and drawing up a will properly is essential, as you need to be able to divide your assets legally and properly. If you haven’t ensured you have a valid will, it will be left up to the state to sort your assets for you, which may not be what you want.
Retirement should be an adventure that you look forward to, rather than a time to fear and panic about. You work your entire life to be comfortable during retirement. Make those years count. Work hard and pay off the mortgage and the debts so you can spend your money how you see fit. Retirement isn’t the end of the world, so don’t let it be the end of your life.