Things We Should All Consider When Making A Retirement Plan
According to recent surveys, almost 1 in every 3 American has no structured retirement plans. This means that they only have less than $1,000 saved up for the future. The data can be alarming since it shows how little we value retirement despite the many warnings given out, if one does not invest in their retirement.
It is important to note that retirement is not always about the money and savings. There are many things to consider when planning for the future, aside from finances. This includes mental health and social needs. Here is a quick guide on how to have a more satisfactory retirement.
Create a timeline
A plan without a timeline is a waste of time. This is a very basic step in making sure that we have laid a good foundation. So what should we put in a timeline? Well, this includes the expected year of retirement. We can also determine at what age we want to retire, so as to make the process easier. Write all the things that needs to be done prior to retiring. It’s also best to put the plans that we have after retirement such as taking a trip or visiting families abroad. Determining these things will help us create a better financial plan which will lead us to the next step.
The Financial Plan
Retirement is heavily gravitating on the financial aspect. Just because we are retired, does not mean that we can have things for free. When drafting a financial plan, it’s best to consider how much time is left for us to work and come up with the required amount of money. Add in the monthly expenses and multiply it to a period of time to have a clearer view on what our finances would be like in the future.
People don’t usually do this because it’s a lot of work and it can be a burden. But figuring this out and finding a solution on how to come up with a budget that suits our lifestyle is easier than facing these problems in the future with no job and income.
Health is wealth
It’s financially impossible to be making a retirement plan without considering a health care plan that best suits us the best. Though retirees at the age of 65 can be eligible for Medicare, not all of the expenses would be covered by it, as there is a prescribed list of expenditure which is can or cannot be borne by Medicare.
For those who are planning to retire early, funding for health expenses from the desired retirement age till 65 years old should also be arranged. Nothing drains the savings like a hospital bill, so it is better be prepared for it.
Get a financial advisor
Even though most information is readily available online, it’s still best to consult with a professional for those people who have reservations and doubts on how to manage finances. Paying a financial advisor can become an additional expense, but the service they’re going to provide will help us in the long run. They can give us insights on how to be more efficient in coming up with a plan. The good thing is that they’ll be able to assess us and the current financial status that we have. They can also give us insider secrets and can make a plan that will personally suit us. Just think of it as a form of investment for the future.
Find something to pursue
We’ve all been under the pressure to work and meet deadlines for the most part of our lives. We have a routine that we stick to and we have a destination to reach, when we wake up in the morning. All of these can be gone the moment we retire. No more work, no job, and no need to get up and get going. Losing a daily activity can sometimes take a toll on retirees.
They say that retirement is the time when we can finally do the things we’ve always wanted to. And this is of course true. Some also choose to go back to work to find purpose and meaning in life. Others have found happiness in gardening, doing voluntary work, or getting in touch with their spiritual side. Retirement can be emotional, too, so it’s best to consider what will make us happy when planning for retirement.
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