Many people look forward to reaching retirement age and being awarded their freedom, but those who fail to prepare could be in for a nasty shock a few years later when their pension pot runs dry. This is why it’s vitally important that people start to make plans at the earliest possible opportunity. Of course, you’ll probably have trouble finding the motivation in your 20’s and 30’s because retirement seems so far away. However, if you reach 40 and you still haven’t started to design your plan, you could well face some serious issues when you reach the end of your working life.
With all this in mind, I’ve taken the time to write this article in the hope of giving you all a helping hand. After reading through all the information I’ve chosen to include, you should be in a better position to fully understand the road ahead and what it will require from you. Obviously, some people need more money than others during their old age, as they have more substantial ambitions when it comes to traveling and such, and this is precisely why you need to pay attention for the next few minutes.
Consider Your Options
When dealing with retirement planning, you need to determine exactly how much money you’re likely to require, and this should be based on the activities you wish to become involved with. Whilst some are content with spending their days sitting in their local pub or at home in front of the television set, others will be more inclined to venture out and experience new sights and sounds. Unfortunately, if you fall into the latter category, you’re going to need much more capital than you might realise, and so planning now could make all the difference.
Work Out A Realistic Budget
Most people pay into some form of pension scheme these days, which means you’re likely to have some basic income on top of your savings upon retirement. You’ll need to find out exactly how much this comes to and how much you need to save. Make sure you keep the figure realistic though, because the chances of you retaining anywhere near 50% of your weekly wage for a decent length of time are pretty slim. My advice? Aim to save nearer to 10%, as this is a little more feasible.
Factor In Your Partner’s Income
Those who are lucky enough to have a life partner should also factor any money they will receive into the budget. You might be surprised; couples who’ve been together for most of their lives often do really well out of retirement, and so this could make a huge improvement to your prospects. You shouldn’t be afraid of compromise when it comes to retirement planning, as your partner may well have different ambitions to you. At the end of the day, so long as you get to take a few nice holidays abroad and live comfortably when at home, who’s complaining?
Well folks, I’ve got to head off now and give my grandmother some advice about stock market trading. Although you might think getting involved with endeavours like this during old age is a strange move, but it can provide a lucrative means to achieve extra funding, so maybe this is also something you’d like to consider?
More about that next time, see you soon!