When it comes to getting tips for retirement, there are no better people to ask than current retirees. Here are 10 of the best retirement planning tips we received from some of our retired friends.
1. Understand that inflation is inevitable.
Rising prices will eat into your retirement funds, reducing your buying power. You should understand that inflation is inevitable and factor it into your retirement plans accordingly.
2. Keep an eye on your investments in pre-retirement.
The money you will need between five and ten years after you retire is the most vulnerable to your overspending. Once this money has gone, it will be a significant challenge to recover it.
Therefore, you should consider investments that provide you with a predictable income. However, be aware that the more predictable an investment is, the less income it will likely offer you. You may wish to take advice from professional investment management services, to ensure you make the best decisions for your future.
3. Involve your spouse in your retirement planning.
Just as you will likely have done throughout your time together, you should involve your spouse in financial planning when it comes to your retirement. Just as you’ve previously discussed buying a new car or taking on a mortgage, for instance, be open with your spouse about your financial retirement plans.
4. Focus on your physical health.
It is crucial to pay attention to your physical health as you approach retirement. Healthcare costs are high, and they are one aspect of retirement that many people fail to consider. Failing to factor healthcare costs into your retirement planning means that any unexpected expenses in this area could jeopardise your retirement plans.
5. Create a budget and stick to it.
Budgeting is straightforward when you know what you have available to spend. However, many people do not take the time to calculate what they will have as their retirement income. If you require assistance in this area, you should consider consulting with an investment professional. These experts will give you insights and tools that will help you stick to your financial plan, check out Portafina.
6. Use a good investment professional.
Following on from the previous tip, you should use a good investment professional. If you’ve not used one before, the best way to find a good investment professional is through a recommendation from a friend or family member who have used one previously
7. Watch out for higher travel expenses in retirement.
There is little doubt that travelling is cheaper and more convenient when you are younger and more mobile. Therefore, consider getting any big travel plans you might have completed before your retirement. Moreover, when you have retired, be mindful of high travel expenses as these will eat into your retirement funds quickly
8. Become mortgage-free.
Owning your home not only provides you with a physical roof over your head, but it gives you considerable emotional shelter too. When you become mortgage-free, you free yourself of a significant financial burden, probably one of the largest monthly expenses most people face.
9. Work a bit longer.
An excellent way of ensuring you have sufficient funds to sustain your retirement lifestyle is to work a bit longer. Working beyond your planned retirement age may not have been your first choice, but it can provide you with a considerable financial cushion for retirement. Even continuing to work for a couple of years means you can considerably boost your pension and retirement funds.
10. Expect to overspend.
Regardless of the amount of financial planning you do before retirement, overspending is inevitable. Therefore, you should plan for unexpected spending and budget accordingly.
Planning for your retirement it’s not difficult, but it does require a bit of effort. The good news is that by making some minor adjustments, you can achieve the retirement lifestyle you desire. Hopefully, these ten retirement planning tips will help you achieve that.