Friday, 14 December 2018

Planning Your Finances For Retirement

With the current state of our country, the prospect of retirement for the younger generation is truly laughable. With many not being eligible for retirement until way into their 60s, it seems waiting to get the entitlement of a state pension isn’t even worth it.

So with that in mind, you should put plans in place when it comes to your finances to make sure you’ve got yourself covered for retirement.

Look At Your Current Lifestyle
Many of us will have quite an active lifestyle, which includes spending money of course. When you retire, that source of income that you relied on each month disappears so it’s important to take a look at your current lifestyle and work out whether that’s something you can afford when you retire. If it isn’t, you’ll want to look at what you need to cut out to make it more affordable. You want to be able to live comfortably after all.

Create A Budget
It’s good to have an idea of how much you’ll need to be spending each month for retirement. This will help you understand just how much you need to be setting aside if your state/work pension isn’t enough for your lifestyle. Think about whether you’re going to downsize the property you’re in as that might mean you’ll have a nice cash injection to work with.

Set your budget out on a spreadsheet and list everything you need to factor in. Make a conscious effort going forward, to be strict with saving money.

Set Deadlines For Loans And Other Debts
We all need to take out various loans or load our credit card every now and again for those big life expenses. We can also get situations where life throws all it can at us and it’s useful to have these safety nets to fall back on when needed. However, when it comes to retirement, you don’t want all that debt hanging over your head, especially when the income you are so used to receiving, stops. Aim to pay off any loans or debts before you retire.

Think About Living Requirements
As we get older, our bodies don’t function quite like they used to and that can make daily life a little more difficult. It’s important, even though a little saddening to think about, to consider what you want your living requirements to be when you get older. Maybe you’d like living with others and therefore would consider care home options. You may want assisted living or prefer to downsize and install the necessary access equipment. All of this will cost money, so it’s good to set aside the funds should you need it.

It’s not something that many of us think about when we’re young, but as we get older, our priorities change. We become more wary of retirement and therefore it’s good to have a financial plan in place for when that day comes. You can never predict the future so be wise and plan ahead to ease your mind a little.

This is a collabotative post. 

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