Understand How Much Time You Have Before Retirement
Whether it’s a year or five, retirement planning will help determine what your long-term and short-term goals are for the remainder of your life.
Once you know that number in months/years, write down any possible events that could happen while retiring.
For example, if someone has 12 years until they retire,
Then make sure there are enough savings so that they can live comfortably for +/- 18 to 24 years.
Know Your Current Financial Situation
The next step is to determine what your current financial situation is.
Determine how much income you have coming in and consider how much you’ve already saved.
Know Your Retirement Needs
The third step is to make a list of all the things you need your retirement money for.
This could be anything from healthcare and medical bills, paying off debts, buying property or starting new ventures.
Review Your Income Sources & Assets
The fourth step is to review your income sources and assets.
What are some of the things that you’ll need in order to make your retirement work?
They could be anything from a home, investments or even starting new ventures.
Plan for the Unexpected
The fifth and final step is to plan for the unexpected. What are some things that might happen in your future?
This could be anything from a health emergency, major life changes or even just getting older.
Common Questions
How Can I Make Sure My Assets Last Throughout My Retirement?
What Should I Do if I Can't Afford Retirement?
What's the Best Way to Set Up My Investments for Retirement?
At What Age Should I Start Focusing on My Finances and Preparing for Retirement?
In Conclusion
Planning for retirement is a daunting task that many people avoid.
However, if you’re not careful and don’t plan ahead, the end of your working life may find you in dire financial straits with few resources to fall back on.
We hope this post has given you some valuable retirement planning tips.
References
- www.inspiredvillages.co.uk/blog/5-key-retirement-planning-steps-everyone-should-take
- www.investopedia.com/articles/retirement/11/5-steps-to-retirement-plan.asp
- www.gqiltd.co.uk/key-retirement-planning-steps/
- www.ageuk.org.uk/information-advice/work-learning/retirement/
- www.moneyadviceservice.org.uk/en/articles/checklist-things-to-do-as-retirement-approaches
