Are you planning ahead for your retirement?
Follow these steps and consult with a financial advisor to ensure a worry-free life after your job ends.
07:52 15 December 2013
There is no “too early” when it comes to retirement planning. As much as you may not want to consider the latter part of life yet, planning for it ensures that you will not have major regrets.
Planning early in life for retirement also means you don’t have to set aside as much money each month to reach your goal as you would if you waited until later in life to begin saving. It is best to meet with a professional when developing a retirement plan. Professionals can help ensure that you take into account all the necessary financial concerns such as taxes, inflation, and changes in the economy.
Here are a few pointers to help you begin your retirement planning.
- Set up a pension—if you don’t already have a pension set up, do some homework to learn about the pension options and find out which one seems to work best for you. Remember that you do not necessarily have to use the retirement plans offered by your employer, you can decide to compare options from independent companies to get the best deal.
- Estimate income—once you determine the amount of money you currently make, you can set aside an amount that is comfortable for you. You will also want to estimate future income, however, since it may either decrease or increase over time.
- Decide on a target—a financial professional can help you determine the amount of money you will need to have in order to maintain your desired lifestyle in your retirement years. Once you know the targeted amount, you can adjust your contributions accordingly depending on the number of years you will continue to work. Remember that if you change the retirement year, your contributions may also need to change.
- Pay-out— Think about drawdown and annuities and how to best use funds.