John Driver
by on October 13, 2021
31 views

Planning for your retirement is important, especially if you want to live comfortably without financial stress in your old age. Retirement planning has several steps with the end goal being to ensure you have enough money to live a fulfilling life even without the monthly income from your job. If you want to pave your way to financial freedom, we recommend you seek professional retirement planning advice to kickstart your journey. Below are some steps that you can follow to get a head start in planning for retirement.

Step 1: Know when to begin retirement planning
When should you start planning for retirement? The answer is simple, now! The sooner you start planning for your retirement, the more time your money has to grow. We often see young adults prolong planning for retirement because they feel like they have plenty of time to get around to it. This is however one of the most common mistakes people make. The longer you wait, the less money you may have for your years of retirement. However, with that being said, it is never too late to start planning for retirement, rather late than never! If you put a strategic plan in place, you might not have to play catch up for too long.

Step 2: Determine how much money you require to retire
The amount of money you will need for retirement is a function of your current annual income and monthly expenses. It is recommended that you expect to need at least 70% of your pre-retirement income as a retiree.

Step 3: Prioritize your financial goals
Saving enough money for a comfortable retirement may not be the only saving goal you have. Most people have other financial goals they strive to achieve before retirement. Often these goals are more pressing, for example paying off your credit cards, paying off the bond on your house or saving money to buy the house of your dreams. The key to achieving both pressing saving goals, as well as retirement planning is by prioritizing your financial commitments. If you have big financial commitments to fulfil in the immediate present, rather downsize the amount you put away for retirement instead of missing payments entirely.

Step 4: Choose a realistic retirement plan
Speaking to a professional retirement planning advisor will guide you in setting up a retirement plan that will be achievable and coherent with your current lifestyle. There is no logic in setting up a retirement plan that you cannot fulfil, it will only leave you feeling demotivated in your saving efforts and leaves you at risk of having no retirement plan whatsoever.

The best decision you can make as a young adult is to start planning for retirement as soon as you start earning a stable income. The next thing you should do is seek out professional retirement planning advice to get all the best tips on ensuring a financially secure retirement. Start today to ensure a better tomorrow!

Be the first person to like this.