Plan For Retirement
Most of us leave this important part of our lives to the last minute. It is vital to be ready for retirement. It will make for a stress-free period, making retirement more enjoyable and not a life sentence. It is never too late to plan. This should have been part of your plans when you started out as a young man or woman. However, life often gets in the way, and before you know it, you’re almost there. It is never too late, if you at least start preparing.
You need to confirm at which age you would like to retire. This should take place at least five years before your retirement date. Know what your sources of income will be after retirement. Are you part of your employer’s retirement fund? What kind of fund is it, pension or provident? Know the rules and regulations provided by these funds. Always have a consultant of those funds who can help with further investment and planning. He/she will be able to estimate how much of your funds you can use on an annual basis.
Think of ways to cut costs now so that you can contribute more to your savings in the runup to the big day. Are you living alone at this stage? No children or grandchildren who need to be considered. This is the time to determine if you are going to stay in your current home or move to a smaller one with less monthly and annual costs in housekeeping. Figure out if you will qualify for a state pension. This depends on your assets and level of income.
If you think you might want to stay in the working environment, just to keep active and your mind busy for a little longer, find out if your employer has a program where you could work parttime or move to a different division of the company. Find out if your company has any courses available for a more suitable position for retirement age.
Does your employer offer a subsidy on your medical aid on retirement? Get advice on how you can utilise any available funds going forward. If not, you are still able to make alternative plans.
If you are planning to move house, consider using this time to visit the location you want to retire to. Find out what centres are available and plan for frail care for when it does arrive. Get onto the waiting list if you don’t want to be disappointed come the day to make the move.
Planning your retirement early with your spouse can be a rewarding time for you both. This can draw you even closer to each other. By starting early enough you will both be more relaxed and rather look forward to this time of your life instead of dreading it.
Five years pass so quickly. Once you have this time slot sorted, diarise the next planning stage about 2 years before the big day.
Setting up an investment now can be extremely useful when you retire. Contact Metric Investments today on options to best suit you, even if it is for the future.
