When we started to compile a list of retirement planning tips, we thought the best people to ask would be those currently going through their retirement. Therefore, continue reading to get ten tips for retirement planning directly from the people who know best. Financial planning can be complex. It is always recommended that you use the services of a regulated advisor like Portafina when making financial decisions.
1. Monitor your investments before you retire.
The money you need 5 to 10 years after retiring is most vulnerable. Therefore, you should avoid overspending, because once you have lost this money, it is more difficult to recover. You should monitor your investments before you retire and look for those that provide a predictable income. However, you should understand that with predictability generally comes a lower return.
2. Accept inflation as a given.
Rising prices will erode your retirement funds, and you need to accept this as a fact of life. Therefore, you should factor inflation into your retirement planning and assume prices will rise.
3. Share your plans with your partner.
You should be open about your retirement plans and share your thoughts with your partner. In the same way, you would discuss buying a new car or moving home, talk your retirement plans through so you are on the same page.
4. Focus on your health.
Healthcare costs are high, so you should focus on staying physically fit and healthy in your retirement. Many people fail to factor healthcare into their retirement planning, so any health issue that crops up can have financial side effects. Therefore, focus on your health and make some financial provisions for medical care should you need it.
5. Create a budget and stick to it.
When creating a budget, you need to know how much you have available to spend. Unfortunately, many people do not understand how much income they have in retirement. If you find it challenging to understand your retirement finances, consider speaking to an investment professional. They can give you insights and advice on keeping on track with your retirement plan.
6. Find a good investment professional
Just as you would go to a dentist for advice about your teeth, you should seek investment advice from an investment professional. The best way to find a good investment professional is through a referral. Therefore, ask friends, colleagues, and family members to recommend a good investment professional.
7. Be careful about travel expenses in retirement.
Travelling is less expensive and more straightforward when you are young and mobile. Therefore, you should get significant travel events completed before you retire. When you go on vacation, try to be smart with your spending. Maintain the same financial prudence when travelling as you would at home.
8. Become mortgage-free
Your home provides a physical shelter, but it generally comes at quite an expense. Most people find their mortgage to be a significant proportion of their monthly expenses. Becoming mortgage-free will release you from a substantial financial obligation. Moreover, you will have peace of mind knowing you own your home outright.
9. Work a bit longer
An obvious method of boosting your retirement income is to continue working for a bit longer. Extending your working life may not have been part of your initial plans, but it can be beneficial. During these additional years of work, you will continue contributing to your pension, receiving the benefits of compound interest growth and tax relief. Both these can significantly boost your retirement funds.
10. Expect to overspend
Regardless of the amount of planning you do, overspending in retirement is inevitable. Therefore, you should understand this is the case and plan for it. Including an overspend factor in your retirement plans can help you offset this inevitability.
If you have started to consider your retirement, you have probably thought about starting to plan for it. There’s plenty of advice available on retirement planning, and we have got ours from the people who know – current retirees. Hopefully, their advice will help you make adequate plans to have a long and comfortable retirement.
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