5 Ways That You Can Prepare For Retirement
It’s a common dream that we all strive for. To one day retire with enough money to spend our golden years in peace and harmony. Everyone knows that if you don’t start planning for retirement at an early age, that you probably won’t have much of a nest egg for the next few decades.
Obtaining financial security doesn’t happen overnight, nor does it happen by chance. It is something that you have to work at every single day to prepare for. In America, only about 40% of the population has plans in place for their retirement. If you are stuck for advice, here are five ways that you can better prepare for your future.
As long as your health permits it, work longer. Whether you choose to work extra hours now in your younger years, or you opt to work well past retirement age, both will serve the same purpose. Even though it would be ideal to retire at the proper age, for some people, this isn’t always an option. If you have the extra time, take up a second job.
The hard work that you put in now will pay off in the next 20, 30, or even 40 years. You cannot predict the future. In 10 years, you may not be capable of working the same number of hours that you currently can. If you can manage it, any extra work is one more week of pay that can go into your savings.
It’s simple. You have to save for retirement in order to live through retirement. There is no way around it, but you can maximize your savings by following a few key tips. Firstly, diversify your portfolio. This sounds like heavy financial management, but all it means is that you shouldn’t have all your savings in one place. Even if you can only put away $50 a month, you should be saving into multiple accounts.
Secondly, liaise with your banking institution. Many banks have options to save for retirement by investing in the stock market. It’s a safer option than just trading yourself and it can yield high rewards. The ultimate way to save for retirement is to use as many avenues as possible. Keep a percentage in cash or with a separate bank but put strategies in place so that you cannot use those funds.
Secure Your Living Facilities
When you retire you will need someplace that you can live out your years. Whether you choose to buy a house and pay it off before that time, or you apply for a retirement facility, you need to secure the bare essentials. Do your research now and make a checklist of what you will need. Will it be cheaper to rent a smaller apartment each month, and how much living assistance will you need at some point?
If you choose to stay at home, then you have to account for any physical and medical help that you may need in the future. The benefit of a retirement village is that these types of living necessities are taken care of. Places such as St Annes Retirement Community will fit pretty much any budget and they have every service that you will need. St Annes offers independent living facilities as well as emergency medical care and rehabilitation services. You can rest assured that all your living needs are taken care of, and you can choose your housing type. From villas and apartments to cottages and duplexes, communities like this will suit any retiree.
Over Inflate Your Expected Needs
It is easy to say that you will only need about 20% more each month than what you receive now through your salary. This is far from the case. Apart from calculating inflation rates, there are also market fluctuations and political changes in the economy that will determine your future retirement savings.
There are handy calculators to help you work out how much you will need upon retirement age, however, you need to inflate these even more. For any figure that you get to, add at least another 20%. There is no way to know what your future holds. It is better to have the money and not need it than need it and not have it when it’s most vital.
Contribute To Your Employer’s Plan
Most companies have retirement and pension plans in place that employees can sign up with. You may even get subsidized if you choose your employer’s plan, rather than your own. Businesses often have hidden benefits that private customers aren’t eligible for.
Employer retirement options usually have better reward structures in place. Because the company is registered for a massive portfolio that includes its employees, there may be discounts or higher deductibles available.
Preparing for retirement is important and you can start at any age. The main purpose is that you regularly save and make a concerted effort to build up that important financial nest egg. No matter your retirement needs, you should start immediately and get ahead of the curve.