29 Aug Important tips for retirement planning
Summary: Retirement planning is something that is inevitable, though the sooner you start, the better off you are. Let’s see how.
People often worry about retaining their financial independence after retirement. But with careful financial planning from early in your career and exploring flexible working options that allow you to be your own boss and work at an easy pace, you can enjoy a happy retired life without worrying about the finances.
With life expectancy having increased over the last couple of decades, so too has the retirement phase in people’s lives. In such a scenario, planning backward is necessary, since the sooner you start saving for your golden years, the more financially secure you will be once you retire. The key is to start saving early in life when most people aren’t even thinking about retirement.
Here are some ways in which you can work towards better financial security after retirement:
Build your retirement corpus
A consumer research study has revealed that the average minimum amount a retired couple would need to cover their household overheads is around £ 18,000 a year. To ensure your savings match up to this number, you must start putting aside a certain fixed amount every month as a rule, no matter what.
The sooner you start saving towards the retirement corpus, the less strain you will put yourself under in your pre-retirement years. This holds true for everyone, whether a full-time working professional or someone who has a work from home business.
Invest in financial instruments
Do your research and invest in financial instruments which can give you a good return upon your retirement. Investing in retirement benefit plans, annuity plans etc. is something that everyone should consider while still in their prime; the money you save today will be your backup when you are older, ensuring you are covered to meet your day-to-day outgoings, medical expenses and money to spend on leisure activities. Hence, ensure you lock in a certain amount from your income even if you are a work from home professional because this discipline will hold you in good stead after retirement.
Look for an alternate source of income
Who says you can no longer earn once you retire! It can be a great opportunity to develop yourself all over again and follow your passion, be it teaching, becoming a life coach or even becoming an independent business owner where you can be your own boss! Moreover, you will have more flexibility, so you can spend time with family, travel or simply relax. Look at it as an opportunity to pursue all your hobbies and dreams that you could not find the time for when you were working full-time. Not to forget, keeping yourself engaged in some productive work will do a lot of good to your mental well-being, which is a common concern in old age.
People who plan their retirement life in their prime are almost certain to be better equipped to handle contingencies and enjoy greater financial independence compared to those who start planning for it later.
Moreover, you can always consider various work at home careers, so you have more flexibility and can work at your own pace to have better control over your life while simultaneously keeping yourself mentally and physically active. With these tips in mind, you can enjoy the retirement life you have always aspired for.
To explore more such tips on planning for retirement or how to start your own company, click here.