Retiring completely from your job means a lot. While some people have the chance to receive retirement benefits, retirement means a full stop to their income. To some of the latter, there are a lot of considerations and time for retirement planning before coming to the final decision of retiring.
The Balance suggests putting retirement interchangeably as “financial independence”. This means both are better done once you have enough combined savings, investment income, and/or pension income to cover your living expenses. Hence, a well-planned retirement planning is really important.
Retirement planning is not restricted to those who are close to retirement. In fact, the sooner you prepare for your retirement age, the better it is for you. Below are several points to take into accounts when planning for your retirement age while you are young.
Retirement planning’s list number one: post-retirement lifestyle
A comfortable lifestyle could differ from one person to another. What kind of life do you want to have after your retirement? Calculate roughly how much money you will need to save to have the retirement life you want.
Plan ahead your retirement savings
Starting to save for your retirement at a young age could benefit a lot. The Balance suggests putting away at least 10% of your annual income for your retirement when you are in your 20s or 30s. Starting to save later means more portion for your retirement saving, even as much as 50% of your annual income. So, it’s better to be safe than sorry.
Check for your retirement benefits and add them on your retirement planning
Will you be getting a pension? Find out how much will you be getting. Take into account the possibility for you to grow in your company. Some countries also provide social security, do your country provide one? If so, find out how much do you earn. Sometimes, claiming your social security early could reduce the amount of benefit you get. Look for thorough information related to your social security. Don’t shy out from asking retired colleagues or colleagues who are preparing for their retirements on the claiming process.
Ask for a financial planner’s help for your retirement planning
If you still have no clue about your retirement, finding yourself a financial planner will help a lot. Financial planners could help you calculate the most ideal amount of money for your retirement savings. The Balance also recommends a financial planner, for they could come up with plans based on realistic assumptions.
