Retirement can seem almost a lifetime away when you’re young and healthy, but it soon sneaks up on us. The topic of aging can be uncomfortable for many of us, but it’s important to be prepared – nobody else can ensure a safe retirement for us better than ourselves. It’s not just about researching the best retirement fund to pay into; it’s also important to be aware of other avenues, to ensure you have the safest and wealthiest retirement possible, and ensure you’re comfortable after all those years of hard work.
Don’t just let retirement creep up on you – in general, we need to start planning for our retirement fund in our twenties. While it’s impossible to predict every major life event, it’s sensible to plan for the worst case scenario. Determine what you’ll want your retirement fund for, and why you’ll need it. Do you plan on traveling a lot once you finish in your employment, or perhaps buy a second holiday property? Do you need to prepare for health care expenses, or support family members? Or do you simply want to live comfortably day to day? This will give you some indication of how much you expect to spend in your retirement, and therefore how much to save on a month by month basis.
Don’t overstretch on your mortgage
Your mortgage is probably going to be your biggest single expenditure throughout your life, so it’s important that you make sure you’re within your means. After all, anything you overspend on your mortgage is just less money to put into your retirement fund. If you can pay off the cost of your home before you finish working, you’re looking at a whole lot more money when you’re retired. The option of reducing your mortgage is becoming more and more popular, as retirement ages are pushed back, so it’s definitely worth looking into.
Start saving earlier
Don’t put it off, the sooner you start paying into a retirement fund, the more you’ll have when the time comes. It doesn’t have to be much to start with, just a few dollars a month soon starts to add up, especially over a number of decades.
Make your money got a long way with clever investments of funds during your employment. Don’t just leave it in a low-interest account gathering dust – spend some time investigating different types of investment opportunities, and choose one which most suits your needs. For your retirement fund, you might not want to choose anything too high risk, but a few stocks and bonds will allow your money to flourish, especially over the course of a few years.
The most important thing to remember when it comes to preparing for retirement is to be proactive. Money saved for a long period of time has more opportunities to grow and mature, and you’ll be grateful that the younger version of yourself was so prepared when the time comes to slow down your pace of life.