Retirement Planning Tips

One is never too old or too young to get started on retirement planning. People want to enjoy their senior years and the only way to do that is to plan for it long before the big day that you finally say goodbye to your job and start living on your benefits and pension.

Did you know that there are individuals who suffer from anxiety just thinking about retiring? Some feel completely overwhelmed and unprepared for it that they often engage a financial planner. Those who are nearing retirement often compare the way they live now with how they’ll live once they retire.

The best thing to do to avoid the dilemmas of retirement is planning for it. Here are some tips to get you started.

Plan It Out

Retirement is one of the most important events in your lives and you should plan for it. It’s not a complicated thing to do at all. According to FinancialMentor, you need a written plan to build financial security by the time you retire. You must take action and your plan will serve as your road map to success. If you’ve written down your plan, you can go back to it regularly to monitor your progress. You must set your goals earlier on to achieve financial security when you’re already retired.

As we covered in our financial tips, a mortgage of some sorts could be part of your plan – it may also not be.  What is for sure is that you should definitely have a retirement plan.

Avoid Lifestyle Creep

Lifestyle creep refers to a tendency wherein a person spends more as his or her income increases. It’s only normal to splurge once in a while especially if you have a reason to celebrate like getting a promotion or raise. However, it’s impractical to spend your additional income on unnecessary things. Why not increase your savings? Better yet, invest those extra cash so you can double or even triple your earnings eventually.  Large purchases should be part of your retirement planning.

Make sure and plan your retirement activities.

Find Other Means of Income

Just because you feel secure where you are now doesn’t mean you’ll stay that way forever. Remember that 65 is just around the corner and when that time comes, you should say goodbye to your job which has supported you all these years. Long before you retire, start building your portfolio for possible part-time employment during retirement. For instance, you may consider working online as a freelance writer or work in the same company as a consultant.

Learn to Prioritize

Do you really need to take that exclusive summer getaway to the Caribbean or buy the latest SUV model upon retirement? Many people dream of buying all sorts of luxuries as a gift to themselves when they retire, especially once they get their lump sum. But if you’re smart, you know better than to use your money wisely. Set your priorities straight. Spend your money on urgent needs like paying off your debts and investing on good health to avoid health care costs.

In Summary – Retirement Planning Tips

Get started on your retirement planning today. There’s no better way and time to be prepares for your retirement than now. Simply follow the tips mentioned above and you’re on your way to achieving your retirement goals.

Mich Sneddon, CPA, CA

A Canadian Chartered Accountant and licensed Mortgage Professional – creator of Reverse Mortgage Pros – the #1 reverse mortgage specialists in Canada.  I make it my mission to educate Canadians about how reverse mortgages work so that you can make an informed and educated decision that’s right for you and your family.