Now what? You are one of the lucky ones, so you have worked all your life and now you have reached a ripe old age and you can retire, but then what? Where is the money coming from and how are you going to live?
If you have worked for a public service or a good business company, you may have paid into a retirement plan and you are fully aware of what you are getting and how you are going to be using it. If not, you can talk to a financial advisor to see what your options are, or you can read some of the tips below.
- If you haven’t got a workplace retirement plan, you can make your own and have a private pension plan. You can meet with the bank you are in and set up a savings account, in which you can save a certain amount of your paycheck each month. These accounts are set up so that the money is frozen until you reach a certain age. Make sure you have budgeted enough so you can save money each month without struggling. Don’t save beyond your means.
- Pay your mortgage off – If you own your own home and you acquired a mortgage to pay the debt off, then make sure you take into consideration, the age at which you want to retire. You don’t want to be still paying the mortgage after you retire. So, when you take out the mortgage, make sure the plan ensures you have paid it off a few years before. Therefore, you can top up your retirement savings by putting your mortgage payments into your savings account.
- You may have to keep working – You will not like this, but you may have to work beyond your retirement. It may only be a part time job or just a few hours work but it will get you a little extra pocket money or it may even pay for one of your bills.
- Budget – When you retire, you may have to redo your budget so you don’t run out of money in a few years. It is going to be tempting to stop work and then blow all the money on that yacht you have been looking at in the catalogue. If you have planned for this, then go ahead, but if you haven’t, prepare to have a few weeks off and then go back to work. Be sensible and budget for a new life.
Retirement should be something you are looking forward to. You have worked all your life to get these years of freedom so make sure you have planned ahead so you have enough money to live a comfortable and happy life after retirement.