Jumpstarting retirement
Credit to Author: Tempo Desk| Date: Wed, 06 Feb 2019 16:20:05 +0000
WHILE most people think of retirement as a destination, it is also something they prepare only to realize that it was too late.
Retirement is not a destination but rather a journey. And whether you’re months or years away from retirement, it’s important to start thinking about it, how you can support yourself during your post-employment life.
Do you see yourself doing business by the time you retire? Do you wish to do volunteer work or doing part-time jobs for something you’re passionate about? Do you see yourself travelling and enjoy the money you’ve saved?
Here are four ways you can jumpstart your retirement:
Start saving up for your retirement now
For those in their younger years, where productivity is at its best, saving more and obtaining value for growth potential are considered as the most dynamic first steps.
But for those who have few years left to prepare for retirement, a little more time might be helpful to ensure a good retirement plan. The point is: the best way to prepare for retirement is by taking action – NOW.
Start saving while the income is stable and sufficient. Start saving while there is still money to save. Start saving while you are still able to produce wealth. Start saving NOW.
Aim to save a certain amount and determine your savings target
How much do you think is needed for a good retirement? Are you still able to live the same quality or an even better lifestyle with the amount you’ve saved for retirement? Consider the types of expenses you make and plan on how to acquire the needed retirement money.
Calculating how much money you need to save for your retirement sounds more challenging than it actually is. The trick is to estimate how much you spend today.
This will give you an idea of how much you might also spend when you retire. It means that the kind of lifestyle you have now will most likely be the kind you’ll be living even after the paychecks stop coming.
Pay attention to your benefits
Many people disregard the benefits that come with employment. They go about their employment life and pay government mandatory contributions without even realizing what they are for.
It’s high time to know the different benefits you can get from all the employment contributions that you consciously or unconsciously make.
How can you avail them and when can you avail them? Educate yourself and be mindful of these things.
Get rid of your mortgages and debts
People who retire without mortgage responsibilities tend to enjoy their retirement years more than those who still have financial accountabilities.
Plan your mortgage payment in a way that you no longer have to pay for them once you have retired. Settle your existing debts as these can be cumbersome when still being dealt with after retirement.
Your net worth is your assets minus your liabilities, and eliminating your debts can boost your net worth even without saving more. So one way to ensure a good retirement life is to make sure those debts are off the hook.
THINK. REFLECT. APPLY.
Why is it important to jumpstart retirement plans as early as now? What roles do savings and debt play when it comes to retirement? List down three reasons why it is important to ensure a good retirement plan?