When we decided to compile 10 retirement planning tips, we decided to turn to the most knowledgeable source in this field. Read on to discover what current retirees think you should do to get your retirement preparations in order.
Planning for your long-term future is crucial; when considering your pension, take on expert advice from a specialist such as Portafina.
1. Keep checking your investments before your retirement.
Overspending during retirement is always likely. However, the funds you need in your first 10 years of retirement are most at risk. Once you have spent your capital, that money has gone forever. Therefore, look for investments that provide predictable income. Of course, the more stability you have, the less income you’ll likely receive.
2. Understand that inflation is inevitable, and plan accordingly.
Inflation will erode your retirement funds buying power. However, there is no getting away from it. Consequently, you need to factor inflation into your retirement plans.
3. Involve your spouse in your retirement planning.
Hopefully, you wouldn’t go out and buy a new house or other significant purchase without consulting your partner. The same principle should apply to your retirement planning. Talking about your retirement plans and aspirations will ensure you are both on the same page as far as spending goes when you stop work.
4. Get health-focused.
The cost of healthcare in retirement can be considerable. Therefore, it is crucial you remain physically healthy as well as financially fit. Include healthcare expenses in your retirement planning. Hopefully, you will not need to spend this money, but it will be there for you should you need it.
Also Read: 4 Crazy Simple Tips To Manage Your Personal Finances
5. Create a budget and abide by it.
Your first step in creating a budget is to understand what you have available to spend. Of course, this is a bit more challenging when looking into the future towards retirement. It is here where an investment professional can lend a hand. They can help you protect your retirement income, then establish a workable budget based on those figures.
6. Find a reliable investment professional.
We use specialist professionals for many things, from health to fixing our cars. However, when it comes to investments, many people think they are expert enough to deal with them themselves. You should find a reliable investment professional to help you plan for retirement. Ask your family and friends if they know of one, as a referral is often the best way of locating a good investment professional.
Also Read: 10 Financial Habits To Avoid: Your Road To Success
7. Rein in your travel expenses.
Travelling is much cheaper and more convenient when you are younger and don’t mind roughing it a bit. Therefore, try to get any significant travelling events completed before your retirement. Also, when you travel, try to rein in your expenses and maintain the spending discipline you have at home.
8. Become mortgage-free.
Your home not only provides you with physical shelter but can account for a significant proportion of your monthly income. Becoming mortgage free will release you from these living expenses and give you the security of owning your home outright.
Also Read: Why Women Should Be Financially Prepared for Retirement
9. Extend your working life.
Extending your working life, even by a couple of years, will ensure you have more money available for retirement. Although this may not have factored in your initial retirement plans, it’s becoming more common for people to work a bit longer.
10. Expect you’re spending to exceed your plans.
Regardless of your planning, you will likely overspend in retirement. There will always be unforeseen expenses, price increases, and tax rises that are difficult to foresee. Including an overspending factor in your plans and budget will cover this.
With some simple planning, you have an excellent opportunity to get your retirement finances in order. Hopefully, these top-10 retirement planning tips will help you achieve a long and comfortable retirement.