It is all too easy to live for today and put any worries about your financial future in retirement behind you, for the time being, but the clock is ticking. If you don’t start planning for your golden years as soon as possible, it could turn out to be a decision you regret.
Whether you already have a pension plan in place or it is something you are still thinking about, it is clear that your retirement may well be more comfortable if you plan.
Here are some compelling reasons why this is such a good idea.
Many of us are living longer.
Average life expectancy levels continue to rise, and while that is good news that you can expect to live longer, it also means that your retirement pot will have to last longer.
Living another ten years or more than your predecessors raises the prospect that you could conceivably run out of money if you don’t start planning for the possibility of a long period of retirement.
Things to do in retirement
Once you quit your job and retire, you will have plenty of time on your hands to do some of the things you might have had on your to-do list for some time.
Fixing your income with an annuity plan in retirement will give you an idea of how much weekly and the monthly budget you have to spend on trips and leisure activities.
As part of your retirement planning, aim to make a sort of bucket list of things you want to do when you are no longer tied by work commitments and then calculate how much money you will need to fulfill those ambitions.
Have you got your bills covered?
When your income drops to a certain level in retirement, it could well be that you will be able to gain access to low-cost medical coverage through Medicare, aided by monthly payment from Social Security as well.
However, it should be pointed out that it is a risky strategy to assume that your retirement money will be sufficient to bridge the gap and enable you to pay your medical bills.
You can’t rely on Medicare and Social Security to take up the slack, and if there is a shortfall, it could leave a big hole in your savings and retirement income.
Another issue to contemplate is that you probably don’t want to burden your family when you grow old and rely on them to look after you.
Many of us like to help the family out rather than it being the other way around, which is an incentive in itself to check that your retirement planning is adequate.
There is no time like the present.
Accumulating enough money for retirement is not something that happens overnight.
If you want to put yourself in the best possible financial position, you need to start your retirement planning today and then review your progress at relevant intervals so that you end up with enough money to be able to enjoy the sort of lifestyle that you want and deserve.