Take the time to plan ahead by eliminating debt, increasing your savings and finding contentment in having a solid plan for your future retirement. Put some time and effort into it now and be empowered to improve your future.
- 0.1 To Be Or Not To Be, Sufficiently Prepared
- 0.2 Facing The Challenges
- 0.3 See What Your Government Is Offering For Your Retirement
- 0.4 What Will Your Retirement Income Be?
- 0.5 Finetuning Your Retirement Savings
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To Be Or Not To Be, Sufficiently Prepared
Preparing for retirement may find some picturing themselves strolling down to the beach, having quality time with friends, cruising around Australia or some other great location, travelling the world. Others may be thinking about what type of living facility they might live in. what kind of health support they may need, etc. To be truthful, each option here share one crucial factor – where is the money going to come from to pay for all of it? As it turns out, more and more people are NOT financially or sufficiently prepared for it.
Facing The Challenges
There are many challenges to financing retirement. But they can be conquered if one plans for it. No matter what age you are, it is not too late to get a plan together. One of the biggest challenges that most people will face, is having enough money to put away into a retirement fund. This is usually because there is little money to stretch that far. The thing is you need to get thinking about how you are going to manage in retirement, before it creeps up on you. Here are some ideas in the following…
See What Your Government Is Offering For Your Retirement
If you live in New Zealand like I do, you can visit the Work and Income website https://www.workandincome.govt…and get a complete guide to NZ Superannuation. We are lucky here because we have ‘Kiwi Saver’. It’s a Government subsidised retirement savings fund, but can be used by first home buyers to purchase their first home. If you think you have something similar in your country, then go to thier website and see what benefits, if any, they offer you for your retirement. Chances are, no matter what any government incentives are, you will still have to find other means to assist you.
What Will Your Retirement Income Be?
Do you think your savings will cover you in your retirement? Get together the basics of your financial records and include your salary and retirement totals. Use the website SORTED to help you calculate and project the figures. Either way, it is better to estimate and then put plans in place to make the adjustments if you are to live the type of life in retirement you plan to have.
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Finetuning Your Retirement Savings
If it turns out that your retirement savings don’t match or align with your targets, then it’s time to evaluate the alternatives. Are you able to make more savings and put a bit extra away? Could you get a bit more from your budget? Working a few more hours might be needed. Adding a few more workings years to your working life. If you have an employer who doesn’t offer a retirement plan, then put savings into your own individual retirement fund account. If you work for yourself then you may have other options. Putting away 10 percent or more of your income into a retirement fund is what most experts suggest. Consider investing in some time to sit with a financial specialist to work out a personalized plan for you.
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Find Ways To Earn Extra Income – Even After Retirement
It is called an “ENCORE CAREER” and could include a number of things including tutoring or teaching, consulting or even having an online hobby business. It could even be house sitting or investing for example. Even a few hundred dollars extra a month could really make the difference.
Have A Hard Look At Reducing Your Mortgage
People In the past might have purchased their home at say 35 years of age and more than likely pay it off before retiring. But now, half of the homeowners are over the age of 55 and still have mortgage debt. Those among them from age 65 and older, are still paying off their home. So if your projected post-retirement budget doesn’t include your mortgage payment and isn’t included in the plan, then there must be other options. These options might have you selling up and downsizing to a smaller home. Or buying somewhere cheaper in a more affordable area might be the answer.
Having Dependents And Being Realistic
Those who are approaching the age of retirement might still support family members like grandchildren or an elderly parent for example. Recently, a study of people aged 50 and over, found that 62 percent gave their family members an estimated amount of $15,000 in a period of five years. There should probably be a limit to this type of gifting and while it may be difficult, be upfront with family about the support and help you will provide them. Remember that you are planning for your retirement and financial security at that time, so be realistic.
Ensure Your Credit Profile Is In Tact
Your credit rating is as important in retirement as it is any other time during your life. It will make a difference and can affect your ability to borrow money and the amount of interest rate you may have to pay. Credit ratings can also make a difference to renting, hire purchases, or even finding affordable car insurance. In short, it can make all the difference to most major purchases and interest rates you pay and the ability to rent a property. So having a good credit score, however you manage it, makes all the difference.
Get Rid Of Debt
In a recent survey, it was found that 28 percent of retirees in the middle-income bracket, pay over 40 percent of their monthly income to their debts. It’s a timely reminder that credit card debt with a 15 percent annual interest rate is equivalent to earning a 15 percent return on investment – this rate is better than any retirement fund is likely to offer. Get help with debt if you can’t do it on your own. Find a company or organization who deal specifically with lowering and eliminating personal debt.
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8 thoughts on “Financial Planning And Retirement – Are You Prepared?”
Your questions on where the retirement fund comes from, has me thinking on where to find this money. The subseuqent questions and suggestions on how to increase our financial situation upon retirement age are really offering some food for thought.
Thanks for a great article and I certainly will think about how I am going to improve my own retirement fund.
Hey SK, thanks for the comments and I’m grateful you visited the site. Hope your own retirement plans work out for you. If you ever decide to take on a ‘encore career’ earning online, I’m here to personally help you.
I’d say that getting rid of debt is the most important one, there’s nothing worse than having debt stress as you grow older. You just want to settle down and enjoy life. Finding ways to make extra income is also important, it’s good to keep your mind sharp and have some fun achieving financial goals. You mentioned a company called Wealthy Affiliate as a way to earn extra income, can you make $2000 a month with that?
Hi Kent, thanks for the question! You can make any amount using the Wealthy Affiliate platform if you put the work into it. If you have a couple of hours a day to commit to building out an online business using the training steps provided in Wealthy Affiliate you will have success. You can try it for free to start with to see how the platform works.
I never did worried much about retirement as the retirement payment in my country of birth was very good, but over the years we nibble away at the savings built up over a lifetime of contributions. Lucky I found a solution with an online network I can earn an income from. But reading your article there are some more things I could change for the better so I don’t have to worry too much. Luckily living in Asia is cheaper then living in other parts of the world.
Hi Tommy, it’s great to have your comments so thank you!
As I was reading your comments, it was a great reminder to me about the versatility of earning income online and that the same opportunities are available to anyone with an internet connection and a device no matter where in the world you live or what your circumstances are.
Whether you are retired or not the online opportunities are there for everyone no matter what your circumstances. Retirement needn’t mean relying on benefits and/or life savings alone.
Regards and best wishes 🙂
Hi and thanks for sharing some really useful tips for preparing for retirement. It’s tough that you work your whole life and then can retire to the unknown if you have a change in circumstances. And let’s face it, the world changes quickly, who knows what you might face in your retirement years. That’s why it’s great to prepare and also look for other income sources too. Thanks for creating this, Kenny
Thanks for calling around and for taking the time to give your comments. Everyone that I know have had unexpected changes that has affected their lives, like losing a job, divorce or separation, losing a loved one, having more people in their lives to take care of whether that be children or elderly relatives. No matter what the situation is, you can never be a hundred percent prepared for what’s around the corner.
Retirement years are no different, but we know it will come eventually and getting financially prepared for it should be in all of our plans.
I wish you every success with your plans.