If you’re already wondering about retirement, then it’s probably not too early to start thinking about it. In fact, more and more people are retiring as early as their 30s and 40s, ready to enjoy their best years without working.
But for everyone else considering the usual retirement age, it is something you should start planning for sooner rather than later. Having a retirement plan in place can stop you feeling uncertain about the future and make it easier for you to make decisions.
Start planning for your future by thinking about your retirement with the help of the following advice.
When would you like to retire?
Working out your ideal retirement age depends on several factors. You’ll want to consider factors such as how long you can see yourself working, when you will have enough money to retire and so on. If you start building up your savings early enough, you could make a plan to retire earlier than expected.
Determining when you can retire is something you’ll want to think about sooner rather than later. Consider what your annual spending will be, how likely it is that you’ll have paid off your mortgage and other debts, as well as what you think your lifestyle will be like.
How do you imagine life after retirement?
How do you envisage life after retirement? If you plan on traveling a lot or being able to live a luxurious lifestyle, then you’re going to need a lot of income to support yourself. However, it is worth remembering that many people experience a drop in living costs at retirement age because they’ve paid off their mortgage, are commuting less, etc. If you plan on taking it easier, then you should be able to live comfortably within what you’ve saved.
Are you making savings and investments?
Growing your retirement income can be done in several ways. You can make investments in property, to a pension fund as well as other kinds of stocks and investments. With so many options available to you, you should consider each one carefully and consult expert advice on where to invest your retirement money. As your earnings increase over time, you might think about adding even more to your savings to help you boost your retirement income further, as well as makeup for any years that might have been lost while you were on a lower income or out of work.
Could you increase the value of your home?
Property is one of the most sensible ways to invest your money ready for retirement. When you get older, you can choose to sell your home and downsize to free up some savings, or you can leave it to your family. Working on increasing the value of your home can help you to forecast what it might be worth in the future. Using a PV calculator can help you to work out the potential future value of your property against current trends to help you forecast. While nothing is set in stone, it’s a good starting off point.
Meanwhile, focus on home improvements that could increase value and add curb appeal to your home. Converting your basement or attic, adding an addition or completely renovating your home could see its value increase and make it more popular with buyers who could be looking for a more spacious or modern home.
If you’ve paid off your property, or you like the idea of building up a portfolio, why not invest in additional properties. Investing in rental properties can be a great way to generate some income, even after you retire, and could be a fantastic way to grow your assets.
Do you have the right insurance in place?
As well as thinking about your retirement income, you need to think about protecting what you have. There are many types of insurance you will need in your life. Life insurance, health insurance and home insurance are crucial for protecting your income and your family in case anything should happen to you, such as a critical illness or damage to your home.
Insurance can seem like an unnecessary expense, but it can be a lifeline if something were to happen to you. As you get older, you’ll soon start to realize how unpredictable life can be, with the simplest of setbacks taking a big toll financially. The cost will be worth it in the long run, helping you get peace of mind knowing your assets are protected. If you haven’t already, you should also think about getting a will put in place.
How can you make the most of your current income?
If you’re concerned about not having enough money to retire, then it’s not too late to change your ways. Learning how to budget to be able to save effectively is a good life skill to have, and it will help you to easily switch up your outgoings and savings according to your current financial situation. You can set yourself some savings goals for both the short-term and the long-term, making it easier for you to save for retirement.
Something else you can do to help increase your current income is to start a side hustle. Side hustles are great for boosting your existing income, allowing you to put more money aside for savings, or enjoy treating yourself in the present. Some side hustles are easy to get up and running, and they could even take off so much that you’re able to give up your current job and work for yourself.
Even if your retirement feels like a long way off, there is still a lot that you can do now to put your plans in place. From making sure you have savings in place to focusing on investments that will benefit you in the long-term, it’s important to get a grip on your finances and future-proof them. It might be too early for you to retire right now, but it’s never too early to start thinking about retirement and your future.