You think that work is hectic? Wait till you begin to conceive the thought of planning your own retirement. It’s scary, for many. Retirement planning is one of the most postponed and neglected aspects surrounding the labour force. The reason being, no one wants to stop making money. So, you can imagine how scary the idea of retirement could be for money-makers—in fact, some people shiver from the thought, and try their best to avoid it.
Despite the negativity surrounding retirement, it is inevitable. Everyone retires at some point in their life. You can’t work forever can you? Intellect diminishes and our human limbs are bound to grow stiff, with old age. Retirement signifies the end of everyone’s employed life, and the beginning of a new financial future; a lengthy respite for older people and a strong reminder that life is nearing its end.
Notwithstanding the gloom that surrounds retirement, it cannot be avoided and happens eventually. Planning for retirement before it happens is like a one-second head start at a 100mmetre race—it makes all the difference. Although it may seem a herculean task to plan for retirement, its perceived difficulty is eradicated by actually taking the step to plan. This piece explains simple ways by which you can kick start your retirement plan and set it in smooth sailing motion.
- State Your Retirement Goals: The general thought of retirement is one of inactivity and leisure. We often have the idea of revisiting a hobby or traveling around to your dream destinations around the world. Whatever your retirement goals are, even if all are leisurely, it really pays off to lay them out in paper or print. Call it your retirement bucket list, whatever; just have them documented for easy access. Documented goals are easier to keep track of and accomplish.
- Organise Your Finances: In other words, create a budget for your retirement. Although, making a budget is sometimes what people with pending dues do, it is something every retirement architect should consider having. Remember, retirement means you stop earning money, except for pension. This means you should pay closer attention to your finances now, especially before you set about accomplishing your retirement goals. If you currently find yourself edging deep into debt, consider opening a retirement account, and save up for retirement.
- Hold On To Extra Cash: If you’re close to retirement, and at the top of your career, chances are you’ll get holiday bonuses and most times a raise. You should make efforts to hold onto such extra money, and deposit them into your already established retirement fund. By doing this, you set aside money for your future retirement while maintaining your normal spending level as a worker. Money set aside for retirement should only be accessed upon retirement. Use a fixed deposit account, if necessary. This will help reduce the urge to dig into your retirement fund.
Retirement planning needs more discipline than is stated above. However, these three aforementioned steps serve as the foundations for serious retirement planning; which can help you begin the process before it is too late. The merits of retirement planning are plenty. Starting it is a plunge into a foreseeable enjoyable financial future.