Ultimate guide to prepare for a bright and enjoyable retirement
Financial security is necessary, more at the age of retirement, and it just does not happen, it needs planning and confinement.
Anyone who dreams for a happy and secure retirement, they need to figure out what exactly it means for them. Everyone should have some planning and set goals for their retirement, to have a fun, secure and comfortable retirement.
Financial expert at Edumagnate suggests, preparing for retirement starts with examining the goal and time you have for that. After that, you need to check for various types of retirement planning experts and companies, who just raise not the only fund to ease your retirement, but also advise you ways to minimize the retirement tax hit while you save for your future.
We have got everything here you need to make the most of your new-found free time.
- Acknowledge the purpose and meaning: With each passing day, we all are ageing, right? And without having a purpose or direction, we cannot outline our life. In fact, as per a survey, people with a clear sense of goal have a lower risk of health uncertainty. Generally, if you look, in our entire life, at three phases-at our 20s, 50s, and in 70s, we need to have a purpose. As at this age, we should consider controlling a few aspects of ourselves that affect our longevity. So, when you are in your 40s or 50s, start planning for your later life to avoid any financial uncertainty.
- Understand your time: For an effective retirement strategy, your current age and the age of retirement work as initial groundwork. Often we do not worry about our future in our early years, and the more we get older, we start focusing on our portfolio on income and the preservation of capital. However, it is always advisable to break your retirement plan into multiple components, such as for travelling, living at the desired location and to rebalance the portfolio. After retirement, mostly we plan to do what we always waited for, and must have finances and wherewithal to achieve what is important.
- Think about health more than wealth: As per a survey, 80% of individuals, say health is the most important for a happy retirement. Regardless of the wealth level, the majority of people consider their health care costs in their retirement planning, yet most of them have not factored health care costs into it. The best retirement plan does not only should be focused on finances but should include health and mental peace as well.
- How much you need for your retirement: As we all know, saving for retirement helps you secure your future financially. However, it is also determined by your post-retirement goals and lifestyle which you want to maintain. While thinking of retirement planning strategies, try to add up any potential income sources, you may have to support yourself.
- Balance your investments: Most people get confused about investment and savings. Saving can be any type of deposit and is extremely safe, making funds available whenever needed. On the other hand, investments are assets which generate long term benefits with the return. Plus, depending on investor sentiment, the economic and political environment, investment regularly fluctuates. For retirement, investment is intended to provide a future income and a wiser way to protect oneself against loss of capital, even when seeking higher returns. By analysis and selection of securities, investment significantly gets affected by significant market moves but would continue to grow on a gradual basis. Adjust your portfolio when you are young to protect your principal from minimizing the risk and from having the opportunity for an outsized gain.
- Maintain a Comprehensive Investment Strategy: Perhaps there is so much investment emphasis has been put on retirement, but you do not need to take all this wrong. Having an investment policy statement is a great way to plan your retirement accordingly. A proper investment policy statement makes you set your investment goals and objectives. Once you have ground rules clearly, you can go further for a framework for making modifications to your plans and prospects for what to do if things don’t go as expected. This document helps you to make more rational decisions about your money.
- Don’t overlook taxes: Saving, investment and execution of all the planning about retirement should be on the top of the list. Consider how much you have to pay as tax after retirement as it can be a more significant fluctuation in your wealth than investment returns. However, get help from experts to know the ways of saving it.
- Plan about your supers: Your superannuation plan can make a significant difference, so keep the idea handy for this as well. Generally, you can access your super at your preservation age-on your 55s/60s. As for what you do with your super – which from age 60 is typically accessible tax-free – you’ll have a few options. For more financial flexibility, you can use a portion of your super balance via a transition to retirement pension (TTR), while working. Alternatively, you can sue your super as a lump sum, when you reach your retirement age. However, it would be valuable to seek professional advice on superannuation.
- Stay in touch with your friends from work: Just because you are retiring and no longer going to your workplace, means you have to lose touch with your colleagues and friends. Arrange a catch-up with them to enjoy some quality time with them, and you can get everyone together and have fun arranging the perfect garden or dinner party. So, plan it accordingly to fund as “Give in Celebration” funds.
- Travel: Always dreamt about a trip around the globe, a simple camping expedition on hills or on mountains? Well!! Now it is a time to execute all long pending to-do lists depending on your health and budget limitations. Retirement is not about staying at the same place and just doing gardening or playing with grandchildren. Go out with like-minded people with similar interests or for exploring new things. If the long trips are not in your budget, so take a good short holiday to the places you never visited earlier with friends or family. However, keep your financial budget ready to enjoy those days.
- Avoid Retirement Depression: As per some studies, who are about to retire, shows more symptoms of depression than those who are still working, and this depression actually goes up by about 43% after retiring. The main reason behind it is that people feel anxious thinking about their money matters and their health. Plan your financial plans when you are in a regular income stream.
- Include your family and friends in your retirement planning: Though you think it is obvious, including your loved ones, especially your spouse, makes your retirement plan easier and comfortable.
- Stay aware of frauds: Senior citizens are the easiest targets for scammers. As per the National Council on Aging, 1 out of 10, 60+ aged people have experienced any kind of abuse. So be aware and secure from any type of investment fraud and tips for avoiding reverse contract scams.
- Be social even with people outside of your age: Your retirement should not be the barrier to creating and maintaining friendships. Having healthy social relationships is directly linked with your well-being. As loneliness in elderly age may increase the chance of death by 12 per cent. Also, there are some powerful benefits to have younger people in your group, as it gives you energy and a new perspective about life.
- Take your retirement as a career change: As per a survey, 76% of people worldwide have accepted that they want to work for as long as they can, and 48% said that it is the environment of work that makes them feel lively, encourage for working. If you still want to work, can take this opportunity as a career change and can pursue your dream for the satisfaction of a job.
- Hire a financial advisor: In fulfilling all of your retirement plans, a financial advisor can play an important role. They can help you spend and save more wisely. Also, research says that people who hired financial advisors are more confident about having sufficient savings and planning for retirement than peers.
- Don’t forget budgeting: If you have already planned everything perfectly and do not have anything to worry about, you may end up spending without giving it a second thought. However, it is important to budget, since now you do not go to have any paycheck to supplement any of your financial mistakes.
- Stay healthy: While medicare provides healthcare benefits for elderly citizens over 65 age, it does not pay for everything. Premiums, deductibles and copayments along with other supplementary charges, which can add as home care, nursing, etc. are not covered in this. At the elderly stage, you may face so many health related concerns, so it is better to plan it while working to have a better quality of life.
Final words: Instead of a time for sowing you down, a well planned retirement can walk you through the whole new life experience. So, have good, professional and experienced financial advisors to make your post retirement life memorable and inspiring.
Kaylee Brown is a blogger, writer, and finance subject matter expert, currently associated with online paper help company Edumagnate. In her free time, she loves to spend time with elderly persons.