Our future retirement can creep up on us all too easily while we’re busy focusing on the present – and unfortunately, unless you’re working towards a specific goal, the fruits of your labour may fail to materialise once you reach retirement age.
Don’t settle for ‘comfortable’
By paying a fixed amount into a pension every month, you might be thinking your future finances are safe. However, by taking a financial backseat and failing to review how much you’re saving or calculating the end outcome, you could be in for a shock when you stop working – not to mention you could potentially be missing out on financial opportunities elsewhere. By making a commitment to actively save, and plan your personal finances, you’d be surprised how much you can achieve over your working life thanks to some smart retirement planning.
Start your retirement plan today by thinking about the kind of lifestyle you want to live when you finish work. Many are willing to settle for cut-backs in spending, but compromising on your living costs doesn’t always have to be the case. Retirement is a rite of a passage, giving you renewed freedom to enjoy in your later years – and if you want to maintain a lifestyle that’s more than just comfortable, you’ll need to plan for it.
Setting the retirement goalposts
Putting a price on your living costs, and perhaps doing so many years in advance, is easier said than done. In order to quantify how much you need to save, it’s vital that you set tangible goals for your retirement. You should create a budget for your living expenses and any extra purchases you plan to make.
This starts with estimating the retirement income you’ll need to live the lifestyle you want. After that, you’ll need to factor in specific goals. So whether you want to buy a property in sunny Spain or treat yourself to a later-life ‘gap year’, you’ll have to account for any big purchases you plan to make and work out how you’re going to fund them.
When it comes to saving for retirement, there’s no time like the present – and the earlier you start the process, the richer your future will be. Even putting a small percentage of your monthly income away is better than nothing and can supplement the money pot you’re left with when you stop working.