Retirement is the time that we spend our whole lives working towards – the golden years. Many people think of it as the end of our lives but in reality, you’ve probably still got another 20 or 30 years ahead of you.
Whether you’re 20 or 50 years old, it’s never too early or too late to start planning for your retirement. The earlier you plan, the more likely you are to achieve financial security and live peaceful retirement years, be it in an assisted living facility with all the luxuries (you may wish to check the benefits of assisted living for seniors), or in your own home. However, if you haven’t started saving for those years yet and think that it is too late, remember that it’s still important to do whatever you can.
Needless to say, there is so much to consider when planning for retirement that it can be worth utilizing financial websites, such as Money Vista. They have lots of tools and guides to help you plan your finances and prepare for retirement.
Saving for the future
The basic state pension is currently 110.15 per week for each individual person but that’s the absolute maximum you can expect, unless you have topped up. This weekly amount often represents a significant drop in income compared to your current salary.
Personal, individual and company pension schemes can drastically increase your pension pot and income throughout retirement. In most cases, company pensions are a better option as the employer usually matches your contributions, if not exceed them.
To find out how your finances look, you can request a state pension forecast from the Pension Service. If you have another pension, you should receive an annual statement of your fund’s performance.
Pension options
If you have a personal or company pension, you will be able to exchange your pension pot for an annuity at the point of retirement. You are able to take a cash lump sum of up to 25%, before swapping the remainder for an annuity.
State pension claimants can boost their income by staying in employment past the official age; you won’t have to pay any further National Insurance contributions and you’ll benefit from a higher income when you finally down tools.
Lifestyle during retirement
Retirement planning is absolutely essential for anyone that wants to achieve a comfortable lifestyle once their working life comes to an end. One of the first things to think about when preparing for your later years is the type of lifestyle you would like to achieve. Do you want to live in the same house with your family members? If yes, then would they be able to take care of your needs 24*7? Since you would be getting old by the time you retire, you might get affected by diseases; therefore, you would require complete attention for accomplishing daily tasks. So, would your family members be able to spare time for you? If not, then would you hire an in-home caregiver from careforfamily.com.au/? Or would you like to move somewhere else? If moving out seems to be a better option, then know that there are plenty of options out there. You just need to research and find out the one that can suit your circumstances perfectly. For starters, you can check out retirement homes. You should identify a retirement home that you would like to live in by looking at sites such as https://sunflowercommunities.org/communities/nagel-assisted-living/ should you become unable to manage by yourself. By finding a beautiful retirement home early, you will be giving yourself the peace of mind that you will be living where you choose, whilst also saving your family the pressure of having to choose somewhere for you.
If you have been used to a high quality life, with the financial freedom to do as you please, or if you’ve been striving towards a better future, you will need to ensure you are able to fund that lifestyle. If you’re an active person that dreads the day you’ll no longer have to set your alarm, you can delay giving up work and continue earning. This could even help you top up your finances – especially if you decide to work part-time whilst drawing your pension.