Are you struggling to plan for your post-working life? Here are 10 retirement planning tips.
When compiling these ten retirement tips, we thought the best people to ask would be those who have already retired. So, read on to discover the best advice from those who know.
1. Keep an eye on your investments.
Five to ten years into your retirement, the money you need is most at risk. Therefore, you should avoid overspending. Once this money has been spent, recovering it is much more challenging.
Therefore, you should seek out investments that provide a predictable income. However, remember that the more predictable the income, the less return you will get. Check out Portafina for expert and regulated financial advice to help you plan for your retirement.
2. Accept inflation as a fact.
Rising prices caused by inflation are a fact of life. It will erode your savings over time, so you need to factor inflation into your retirement planning.
3. Include your partner in your retirement planning.
Just as you would discuss moving home or buying a new car with your partner, you should do the same with your retirement planning. Doing so will mean that you are both on the same page regarding your retirement finances.
4. Concentrate on staying physically healthy.
The costs of healthcare can be considerable. Therefore you need to concentrate on your physical health and stay fit for your retirement. Many retirees fail to consider healthcare costs, so they become a considerable burden when they crop up.
5. Start budgeting.
To create a successful budget, you need to know how much you will have to spend in retirement. However, most people have no idea what income they’ll have when they retire.
If you are one of these people, you should consider speaking with an investment professional and work out what your retirement spending is likely to be. They will help you calculate your income, and they also have additional tools and experience to help you stay on track.
6. Find a good investment professional
Even if you don’t use one for the previous tip, you may well need an investment professional sometime during your retirement or leading up to it. Often, the best way to find a good professional is through recommendations from friends or family who have used one previously.
7. Take care over high travel expenses.
Travelling is more straightforward and less costly when you’re young and mobile. Therefore try to get any big adventures out of the road before you retire.
Also, try not to go on over expensive holidays. When you travel, try to remain as frugal as you are at home.
8. Get free of your mortgage.
For most people, their home is not just a physical shelter but provides them with financial security. You will remove a significant monthly expense if you own your home outright. You will also have the security of knowing you will always have a roof over your head.
9. Continue working a bit longer.
If you are concerned about having sufficient income for your retirement, there is a straightforward solution. Although working a few extra years may not have been in your original retirement plans, it can benefit you financially in several ways.
Firstly, you will have income for a few more years. Secondly, you can continue to contribute to your pension, increasing the income you will have when you retire fully. Your contributions during these additional years will still benefit from tax exemption and compound interest groups.
10. Anticipate overspending
Despite making considerable plans for your retirement, you will likely overspend in certain areas. Try to budget for unexpected costs. Also, consider expenses such as tax, maintenance, and emergencies in your body.
Conclusion
If you’re struggling to make plans for your retirement, you should not be too concerned. However, you should start making plans as soon as possible. Hopefully, the ten tips for retirement planning will help you develop a plan for a comfortable retirement.
Poppy Watt