It’s during the years of work that we should start saving and planning for our retirement finances.In order for our retirement years to be as fulfilling as we envision, it is crucial not to take retirement finances for granted.
Based on our current state of income, we must deal with all of the uncertainties that may arise in retirement by developing a plan that fits our working income.
For most us, the goal is not to necessarily retire in the traditional sensebut to be free to enjoy our retirement years without worries of finances.
Some retirees have the choice of spending all of their retirement savings in controlled bursts until death or leaving some behind for their loved ones.
This is, of course, a personal choice for those who have enough savings to finance their retirement. Unfortunately, not everyone has that flexibility and with a poor retirement plan, in a matter of years, your savings may be gone and you may have to consider an alternative means of support. This may include dependency on children and/or a need to work during your golden years.
This may include dependency on children and/or a need to work during your golden years.
If you think a working retirement may be in your future, it is time to start a stricter program.
There is always a possibility that some retirees may be faced with inadequate income during retirement and, as such, there may be a need to work at least part time during retirement to have enough money to afford a minimum standard of living.
Many people decide to retire without even thinking through the decision, then end up returning to work. This can create great consequences for your financial security.
While everyone’s goals and situations may be different when it comes to work and retirement, it’s a possibility that continuing to work during retirement may not realize your ideal vision of retirement life.
This can be mitigated if an effective retirement plan is implemented and an aggressive saving plan is instituted relatively early during your working years.
Most of us look at retirement as ‘greener pastures’ as we might be able to enjoy all the leisure activities we weren’t able to when we were working citizens.
Even if you think you have enough, you should still approach luxuries with the intention of either saving for them or finding other sources of income. The important thing is to acknowledge that, even though retirement might be the end of your working life, it might not be the end of your financial life.
In contrast to the idea of leisurely strolls and endless fun, there are a number of retirees who choose to work after reaching retirement age just for the emotional fulfillment.
An emotionally fulfilling job may not have been an option when you had a family to support but it allows you to make connections in a widening social circle and helps to avoid depression, isolation and lack of motivation after retirement.
Even more so, it provides a source of income. If you find a job you love and end up working during your retirement years, the financial aspect of your retirement planning may be much easier.
Financing your future may not be easy, as people are living longer and health & social care costs are increasing. For this reason, planning and revising your retirement plan is essential.
Please listen to the retirement strategy video to get a better understanding of how to plan your retirement account during your working years.
Although our lifestyle may change when we retire, the principles of personal finance will not. We will still need to prepare a budget, control our expenses and monitor the rate at which we are consuming our reserves.