Planning for retirement can be exciting or scary, depending on how you look at it. If you’re unprepared for your retirement, then your feelings probably fall into the latter category. Planning for retirement can be difficult as it always seems such a long way off, but you will thank yourself when the times comes. Having a solid financial plan to build up your retirement funds is the best way that you can ensure you are happy and comfortable in your older years. Here are some top tips to prepare for your retirement.
- Set Targets
One of the best ways to motivate yourself to start saving for retirement is to set some targets. Is there something you’ve always wanted to do or somewhere you’ve always wanted to go but have never had the time? Retirement may be the perfect opportunity to start crossing things off that bucket list, so why not cost it out to see how much money it will require and begin saving towards these goals. This makes saving fun and exciting rather than a drag which is sapping the funds from your everyday life. Of course, it is wise to first plan your living budget, and then you can focus on the fun part.
There are many ways to invest your money – most of which are mind-bogglingly confusing, which has a tendency to put many of us off. However, if you have a chunk of money sitting in the bank, it is a very good idea to put it to good use. By investing, over time you can make your money double, triple, or sometimes even more! The best part about investing is the longer you leave your money, the bigger it will grow, which makes it the perfect solution for retirement as you will be less tempted to withdraw it early. Whilst there are traditional methods of investing such as buying a house or setting up a savings account, if you have excess cash to work with then there are more complex investments you can make which reap greater gains. One of the best ways of saving is to look into self-managed superannuation funds(SMSFs).The difference between these and other types of funds is that the members of an SMSF are also the trustees, which allows them to run it to their own benefit. This increased level of control over your savings fund is invaluable in getting the most out of your money. If it all sounds too complicated, it is well-worth seeking the advice of a professional financial planner who will be able to decode all of the rules and regulations for you and ensure you get exactly what you want out of your savings.
- Workplace Pension
Many people shrug off their workplace pension as just another bit of paperwork that isn’t worth much, but if you’re smart you can really get a lot out of it. Speak to your company to find out what’s on offer – it might be more than you think.
With the right planning and the right financial advice, you can make your retirement goals a reality. So what are you waiting for? Start your retirement plan today.