Retiring Happy – Everything You Need To Know About Saving For 65
Have you made adequate provision for your financial future when you retire? You’ll be shocked to know that around 50% of people are not properly prepared for their financial future once they hit retirement age. It is for this reason that more and more people are opting to work for an extra 10 years after their retirement.
Globally it is known that you need around 75% of your salary to survive from the day you retire. Saving for the day you retire and exploring your option after retirement has become a complex task. Will you invest your pension into an investment portfolio or will you opt for one of the many QROPS pension schemes are two of the main options for those hitting retirement age. Either way, you need to make sure that you have saved enough for the day you retire. Here are a few easy ways you can boost your retirement fund before 65:
The most important time into your retirement will be around 5 to 10 years into your retirement. This means that you need to make sure that you never overspend on your pension in the first few years. Another great tip is to make sure that you find a predictable source of income.
Always keep in mind that prices will rise. There will be an increase in the cost of inflation every year. Next year you won’t pay the same amount for a loaf of bread as you did today. When you plan for your retirement make sure that you take inflation into account.
Be open about spending
You need to sit down with your spouse to discuss retirement spending. Both of you need to be on the same page and you both need to agree on how much you’ll be able to spend the day you retire. If you find that you both need a little more income during retirement you need to make sure that you plan for this ahead of time.
The best way to plan for your future is to create a budget. Once you have this budget in place you need to stick to it. Most people will not calculate how much they can spend during their retirement. The best way to set a budget for your retirement is to sit with a financial advisor.
You regularly visit the doctor to maintain great health and in very much the same way you need to regularly sit with your investment professional to make sure your retirement fund is in good health. A healthy retirement fund means a healthy bank balance in retirement.
Cut travel expenses
Many people plan on travelling when they are retired. But if you have not budgeted for this then you need to make sure that you get the travel bug out of your system while you are young. Travelling around the world is also much easier when you are younger and more mobile. When you are older it is best to plan shorter holidays which are more relaxing.