Aging creeps up on us all, but with proper planning and proper financial advice, it is perfectly easy to live out your final years in both peace and harmony, safe in the knowledge that you’re not putting anyone else in financial difficulties because of your choices.
Making the Right Choices Now
It’s important to note that whether you can live a long, healthy life isn’t necessarily something that should concern you if you have well-thought-out finances and plans in place.
What happens if you develop a serious illness and need to pay for expensive treatments which your insurance won’t cover? While accidents can happen to anyone at any point in their life, they do occur more often as we grow older.
Here are six questions to ask yourself now to ensure you’re in the best position when you do take that decision to retire:
At What Age Will You Retire?
Is this a decision you will make based upon your current financial situation or one which will be dictated by the state of your finances?
As there is a chance that you may not necessarily have planned for retirement, it’s not uncommon for people in their late 50s and early 60s to attempt to catch up with the amount of savings they should be sitting on.
Where Will You Live During Your Golden Years?
Retirement doesn’t mean you have to leave the home you’ve lived in for years and travel the world. It could be that you decide to downsize into a smaller home, move closer to family, or even retire abroad.
Another popular option is to move to a retirement complex like the Brandywine Living complex, a community assisted living Haddonfield NJ. These complexes offer all kinds of age-related services for the people staying with them.
What Will Your New Pension Be?
The decision on what pension you will receive is not always something that can easily be factored into your plans, especially if you still have some time before reaching the age to claim it.
It’s worth looking into now, as more companies are deciding to switch employees onto cheaper pension schemes with fewer benefits which are generally easier for employers to maintain.
Have You Saved Enough Money to Live on?
Taking into account the current tax rate and the rate which, within five years, will be paid to you from your pension fund, it’s vital that you have enough money to live on for a couple of years without having to depend upon others.
If you don’t have enough savings to take care of even a couple of years’ worth of income, you should look at ways to increase the amount you’re able to save.
Should You Be Saving Extra for Retirement?
When saving for your retirement, it’s best to do so in several small amounts rather than in one lump sum.
Start now, and before long, you’ll see just how much you’ve saved and how much the stress of those later years will have eased.
Will You Get a Retirement Job?
It’s possible that you’ll retire and then decide to continue working in a part-time capacity or as a volunteer, but if this doesn’t happen, the idea of living just enough to provide you with a pension is likely to be something that will stay with you for the rest of your life.
By keeping this in mind, retirement could be as simple as having enough left over at the end of the month to cover your expenses and save some for the future.