Struggling To Plan For Your Retirement? Try Adopting These Ten Retirement-Planning Tips
When you’re planning your retirement, there are no better people to speak to than those going through their retirement currently.
Therefore, we asked current retirees for their ten best tips for retirement planning, which they came up with.
1. Check Your Investments Before You Retire
The money you’ll need between five and ten years into your retirement is at most risk, so you should avoid spending beyond your means. If this money gets lost, you will find it more challenging to recover.
Therefore, search for investments that provide a predictable income. However, you must remember that with greater predictability generally comes lesser returns.
2. Accept Inflation is Inevitable
Benjamin Franklin famously stated that death and taxes were the only two certainties in life. However, you can be sure that inflation and rising prices fall into the category. You should accept this inevitability and factor it into your retirement planning.
3. Involve Your Spouse In Your Plans
Being open and honest with your spouse about how much you can spend in retirement is crucial. You both need to be on the same page from the start to avoid any confusion later on. Therefore, involve them in your retirement planning from day one.
4. Keep Healthy
Health care costs are high, so keeping as healthy as possible is as critical as being financially fit. Many retirees fail to plan for the cost of healthcare and get caught out when they crop up. This is even despite the substantial costs of healthcare being a prominent and regular subject in the media.
5. Create a Budget and Adhere to It
Creating a retirement budget begins with you understanding how much money you have to spend. Incredible as it may seem, many people don’t take the time to calculate the amount of money they’ll have to retire on. However, if you struggle to create budgets, you can get some help from an investment professional.
6. Find an Investment Professional With a Good Track Record
You wouldn’t think twice about going to a doctor for medical advice or a mechanic to get your vehicle checked. Similarly, you should seek advice from an investment professional and one that has a good track record. Friends or family have previously used one, so ask them if they can recommend a good investment professional.
7. Consider the Cost of Travel
It is much cheaper and convenient to travel when you are younger. Therefore, consider making any significant excursions before you retire. When you travel during retirement, try to adopt the same spending habits as you do at home and stick to a budget.
8. Get Mortgage-Free
Paying off your mortgage is one of the most significant financial events in your life. Becoming mortgage-free before you retire will not only make you financially better off but will give you an incredible sense of security and satisfaction.
9. Extend Your Working Life
It goes without saying, if you extend your working life, you’ll put off the time when you need to draw on your retirement funds. Although continuing to work might not have been in your original plans, doing so enables you to boost your retirement funds significantly.
10. Expect to Blow Your Budget
Even with a significant amount of financial planning, it’s likely that you’ll blow your budget. Unexpected expenses, taxes, maintenance, and other spending can rise sharply and quickly. Therefore, continue to assess your spending and adjust your budget accordingly.
If you have been struggling with retirement planning, or have yet to start, now is the time to get back on track. Hopefully, these ten retirement planning tips will help you get organised and ensure you have a comfortable life when you’ve stopped working.