Get Ahead of the Game: Plan For Your Retirement and Beyond

We often plan for the future, but miss out on important aspects of our future that require planning, such as retirement and beyond. Retirement should not be something to dread, because if planned properly, it can make for a secure and fun future.

Retirement planning begins with thinking about what you want your retirement to look like and how long you have until you reach retirement age. This then allows you to adequately plan how you will get there.

A retirement plan is usually something you put off as it often seems too far in the future to think about now. Unfortunately, you never know what path life may take you down, or how quickly time flies. You don’t want to be in a position where you wish you had started planning earlier because it can take a long time to meet your retirement plan goals if you want to be realistic or reap the rewards from your investments. So, the earlier you get started, the better.

#1 Start with a roadmap

A roadmap is made from where you are now, to where you want to be in the future. This creates a timeline so you know how long you have to reach your goals, how much risk you can take, and what kind of action is required.

#2 Decide what you want your retirement to look like

Now you know approximately how long it will be until you retire, it is important to take a look at what you want your retirement to look like. Take some time to consider all your options. You may prefer to live a quiet life in the suburbs or you may opt for a world cruise. This will help you determine the spending that is required to live. It is a common conception that your living costs will reduce as you enter retirement, but that is not always the case if you decide to travel, move house or have unexpected medical bills.

Once you have decided on what your retirement may look like, you can cross-check it with your timeline to start working out how much money you need to be putting aside to achieve your retirement goals. It is also a good idea to consider the rising costs of living expenses. If you are a long way off retirement, it is important to take this into account when budgeting.

#3 Save and Invest

If your retirement is not coming up anytime soon, then it is a wise idea to start saving and investing some of your money. It may seem too early, but if you can and are earning money, it is never too early to start. Many pension options provide a secure way for you to save, which are usually restricted until you turn 55 years of age. This type of savings can help when taking money from the pot can be tempting! Pensions are risk-free but limit the return you make.

Another option you can choose is to invest some of your money for the chance of living a more comfortable retirement. If you do not know anything about investments, you could consider hiring a financial advisor who can help you construct a portfolio. An investment portfolio for retirement usually consists of stocks and/or bonds with an average, long-term rate of return that is approximately 7-10%.

#4 Obtain the correct insurance policies

Life and critical illness coverage is a wise decision for anyone but becomes more important when planning for your retirement and beyond. If you have a family, a mortgage, and investments, these kinds of policies can provide financial security for you and your family for now and in the future.

Life insurance policies can provide peace of mind to you and your family by supporting costs for medical bills in the unfortunate event you fall ill, inheritance tax, funeral costs, and more.

#5 Plan for life after you

In the event of your passing, it can be a hard time for your family, without the added stress of disorganization. When planning for your retirement, it is also key to plan for life beyond retirement, too, to provide peace of mind for you and your family. This includes having a plan for any unpaid debts, finalizing your will, and arranging your funeral. Getting these done early on means you can save money, remove the burden from your family in an already hard time, and plan a meaningful celebration of life. This also means you can pick from a range of tributes such as cemetery slanted gravestones, floral arrangements, and music, that will honor your life and allow you to be a part of the celebration.

Planning for retirement and beyond can be an excellent way to save money and increase the comfort of your future. Plans and goals can change along the way, but as long as you have a roadmap that will lead you to a secure, comfortable, and fun future, you’re all set.