By Emmanuel Zvada SOME people prefer to retire at an early age while others choose to work for as long as possible. Whatever your preference, you need to know that one day you will retire through either early retirement or normal retirement. The best time to start thinking about your retirement is before your employer reminds you that you are about to retire. This article will help you plan and prepare for retirement before your target date so you have time to make adjustments or rethink your assumptions on how your retirement will look like.
COVID-19 has thrown many well-laid retirement plans into disarray. Maybe you planned to work a few more years, but now your industry is in upheaval, and you’re ready to call it quits. Or perhaps retirement was around the corner for you, but now you’re worried about the economic downturn so you plan to stay on the job longer.
Retirement is not as simple as reaching age 65 or having an early retirement and quitting your job. It takes planning and the earlier you start, the better. For some people, retirement can seem like unknown territory; wondering how to fill your days and if you can still afford survival after work. I know that just the word retirement itself will make your mind start racing with the probabilities of what you could do when you retire.
Remember … Saving matters you should have done so!
If you are not saving, it’s time to get started. Start saving, keep saving, and stick to your goals If you are already saving, whether for retirement or another goal, keep going! You know that saving is a rewarding habit.
Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow. Make saving for retirement a priority. Devise a plan, stick to it, and set goals.
Remember, it’s never too early or too late to start saving. We encourage everyone who knows one day they will retire to use their imagination by that we mean you need to know what you are going to do on the day after your retirement but through imagination.
Put future “you” on your daily agenda
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You should always put retirement planning on your daily agenda nomatter what age you are and this will assist you to prioritise all you have to do and manage your finances properly.
It is sad that the majority of people still do not begin their retirement planning until they are a few years away from retirement and it’s just something everyone has to be careful with daily. You may have certificates of long service awards, very big titles and a good position but one day you will retire and you have to plan for it.
Consider basic investment principles
How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you will have saved on retirement. Know how your savings or pension plan is invested. Learn about your plan’s investment options and ask questions. Put your savings in different types of investments. By diversifying, you are more likely to reduce risk and improve return. Your investment mix may change over time depending on a number of factors such as your age, goals, and financial circumstances. Financial security and knowledge go hand-in-hand with retirement planning.
Start planning now and retire to something
Knowing that one day you will retire should drive you to plan well enough for your retirement. Being retired does not necessarily mean your life is simpler, it can become worse due to responsibilities that one has to meet. Planning for retirement is very crucial, as it helps to reduce pressure towards retirement. As you look to the future, there are a lot of unknowns, and the key to secure your life after work is making sure that your plan is flexible enough to withstand the unexpected.
So, when you think about retirement planning, here is what it really means: When you are not earning an income, how will you be provided for? Where is the money for rent and utilities going to come from? How are you going to pay medical bills? Where are you going to get the funds for school levies for your children.
All these questions should prompt you to start planning for retirement. When planning for retirement, you need to consider a variety of factors, such as when your retirement will be, what you will do after retirement, where you will be staying after retirement, and, of course, what you will be doing on retirement.
Plan about your health post retirement
Retirement is a whole new phase of your life, but the slowdown doesn’t mean you have to forsake all aspects of your life. On a positive note, it’s the ideal time to do things you have always wanted to do now that you have all the time you need. The most important thing, however, is monitoring your health and ensuring you stay fit. An inactive lifestyle can really take a toll on your life.
During employment all your expenses are covered by the employer but once you retire, all of the costs that were previously covered by your employer will be your responsibility. It will be best to look around for a reliable and affordable health management company that can be used even after retirement because medical emergencies are very expensive and they are common.
Are you emotionally prepared to leave your job?
Retirement can be an emotional time; many life changes are occurring and it’s very normal to feel a little bit strange. Imagine a situation where you have been working and collecting a salary for most of your time as an employee, something which provides you with a sense of security. At or near the time of retirement, employees must start to prepare themselves for a time when they will no longer be receiving a salary. It is also important to note that although you will have your social security, savings and investments, the loss of a salary can be devastating if you don’t have plans to cushion yourself.
Being retired means that you would be spending a lot of time at home. Creating a safe and peaceful haven must be a part of your plan. Retiring is a much-awaited event in any working person’s life. This culmination of hard work deserves nothing but the best experience possible. The excellent way to achieve a happy retirement is to prepare for it while you are still working.
- Emmanuel Zvada writes in his own capacity he is a Human Capital Consultant/International Recruitment Expert and Author: