None of us like to think about retirement.
We’re a nation of people “living in the moment”, and planning for our autumnal years isn’t always our top priority. But whether we like it or not, we’ll all find ourselves clearing our desks one last time and looking forward to a life of relaxation – that is of course, providing we have solid plans for retirement in place.
Whether you’re 21 or 61, it is never too early – or late – to being planning for later life. In fact, the earlier you start planning the better. Here are five ways you can being making plans for retirement today, so that you can enjoy tomorrow:
1. Have a plan in mind
We all have a plan in our minds when it comes to retiring. Some of us dream of taking leave early, while others want to work as long as they can. Whatever your personal preference, you need to have a solid plan in mind.
Make sure you know the amount of state pension you will be entitled to, as well as what you’ve already accrued in your pension pot. When you know how much you’ll have to live on, you’ll be able to plan more accurately.
Will you have a car to run, as well as bills to pay? What are your requirements and needs going to be when you’ve stopped working?
Make sure you know exactly what you’ll need to pay for, and how much you’ll need to spend. This will help avoid any nasty surprises. After all, you want to have enough money spare to tick everything off your “100 things to do when I retire” list.
2. Fill your pension pot
A solid pension is the best way to ensure you have enough money to do all those things on your retirement list.
The first step is to find out if your employer offers a pension scheme. If they do, get yourself signed up right away. Many companies will also match your contributions, helping you to grow your savings quickly and efficiently. This is especially important for those who have left it rather late to start saving.
If your employer doesn’t offer a pension scheme and can’t set one up, look into private pensions or tax-free savings accounts. However you choose to save, make sure you make regular contributions to help you enjoy your retirement in relative luxury.
3. Clear your debts
Credit cards, student loans, mortgages – all these debts can mount up and really eat into your pension savings.
To effectively plan for retirement, make a conscious effort to clear as much of your debt as possible. Clear those with the highest interest rates first, and then try and wipe those with the smallest repayments left.
Not only will this leave you with more money, but it will also give you peace of mind and an improved credit rating.
4. Learn to live to a fixed budget
We always live to our means, but as you approach retirement age it’s a good idea to start living to a fixed budget.
You should already have an idea of how much cash you’ll have to live on each month, so try and stick to this. That way, it’ll be much less of a shock when your capital is reduced. This is only a simple change that you should try a few months before leaving work.
You may be surprised at how much extra cash you have at your disposal.
5. Consider care provision
The final thing to remember when planning for retirement is to consider care provision. It may seem like planning for a dark time, but it is extremely wise to put some money aside should you need domiciliary or residential care.
Care homes can be expensive, especially if you have a particular illness or disability, so it’s a good idea to put some money aside just in case. After all, this will help ease the stress and worry for your loved ones.
Planning for retirement is easier than you might think, as long as you start today. It’s never too late, but the earlier you start – the better. After all, you want to be able to enjoy your autumnal years in style, security, and comfort.
Solihull Care is a leading provider of home care in Birmingham, UK. To find out more about their services and how they can help you, visit their website today.