Seven Retirement Benefit Plans
Spending a comfortable life post retirement can be a real challenge both practically and financially. Studies have revealed some astonishing revelations. A majority of workers nearing the age of retirement have no tangible savings at all. It is therefore important that persons who are around ten years away from settling down, irrespective of the money they have saved, need to to invest it properly to gain maximum profit. Taking these seven necessary steps will ensure that you don’t go down in the dumps and cross the finish line ahead of all others.
- Know where you stand
Planning for the ideal retirement is the most important thing to consider as you approach the twilight years. A simple and honest assessment will see to it that you are at no point of time ill prepared to address your shortcomings. Start by calculating the amount collected for retirement, including taxes, but omitting money required for emergencies or personal purchase.
- Identify the source
Retirement savings may make up the major portion of your plan for securing a satisfactory monthly income, but there are additional sources of income which can add to this. While this could benefit long term workers, new ones not covered by any pension plans, can consider a part time employment for livelihood.
- Determine your goals
By planning what you are aiming for will prove extremely significant in the long run. By downsizing the way of living, one can actually determine the expenses required as compared to a person who, say, plans to travel a lot. A monthly budget, for medicine, insurance, doctors bills etc should be developed.
- Decide your retirement age
Planning on when to retire depends on various reasons. A younger person, may choose to quit early, do long as he is financially well off, while much older person would like to work as long as possible. So decide on your target age, once you know how much is enough to live post retirement without having to run short of cash.
- Be prepared for shortfalls
In Spite of all the efforts of accumulating funds for use after retirement, there are bound to be instances when you could fall short. This can be overcome by a combination of increasing savings by cutting down on unnecessary expenditure.This is easier said than done, as it requires just hard work and nothing magical.
- Tolerate the risk factor
Once a sizable amount of savings have been accumulated after retirement, it is now the time to look for multiplying them. By focusing on high yielding dividend paying options can considerably increase your income. Avoid above average returns, which may give short term benefit, but in the end provide mixed results.
- Take financial advice
While saving money may not be a big issue for most people, managing the same is the biggest problem. Using the services of a good financial consultant will go a long way in ensuring that your funds increase without major risks. Good advisors charge approximately 1% of the assets involved, which is a reasonable price to pay for managing ones portfolio.
Consider this as a wake up call if you have not planned to save enough for your numbered years. After 55, if no action has been taken, better do it now, because after 80’s you will be on the road, if not earlier.