The Truth about Retirement Planning

When should you start thinking about retirement planning? The truth is, you should start your retirement plan of action in your twenties, probably when you get that first job. While many of us envision when and how we want to retire, we often wait too late to start the ball rolling. Here are a few tips that will help you be more financially prepared and secured.

Know your figures

Determine how far away you are from retirement and how much you will need to spend each year after you retire. It is recommended that you cater 75%–85% of your current income for daily living expenses, travel expenses and most importantly medical expenses, as healthcare increases as you get older.

Use a calculator

Do a search online and use a retirement planning calculator which will help you identify the amount of money you need to save, to accomplish your retirement goals. You will be surprised how many of us need to save more for retirement.

Don’t Wait… Start Now

If you are already saving, whether for retirement or another long-term goal, keep going. Saving is a rewarding habit. If you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount you save each month.

Get a retirement plan that suits you

You need that money to grow. Investing in a pension or annuity makes your money grow. Ensure that you have enough for your retirement needs by exploring the options available. There are many plans out there so get some advice from a Financial Advisor. Don’t be afraid to ask lots of questions! At the end of it all you must walk away with a customized retirement plan, unique to you.

Lastly, Keep on Track

Once you’ve identified a plan that suits you, stay on track with your contributions. It’s best to create a salary deduction facility, with money automatically being deducted from your bank account and going straight to your retirement plan.

Retirement planning takes effort but knowing where to start makes all the difference. Be disciplined, it’s your future self you’re saving for.


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