Are you among those who scratch their head every morning and worry about planning their retirement? Well, it's a tedious task to plan retirement. You might be investing solo for decades, but do you think only investing will assure you to a great retirement?
The answer is NO! Planning for a great retirement requires many other things along with investing.
And if you are clueless where to start from, do not worry. Follow these simple steps to plan your expected retirement:
See when you can realistically retire
It's not a simple question to answer, but running some numbers will give you a good idea about where you stand. Check your current spending, see how much you save every month and accordingly calculate your retirement age. Retiring past your full retirement age allows you to receive full social security benefits.
Manage your expectations
It is said that, you'll need 70 percent of your pre-retirement income to live comfortably in retirement. But that's just a general rule. If you want to travel, join a golf club or help send your grandchildren to college, you might need more. You should manage your expectations keeping these few things in your mind.
Save 10% of your income for retirement
Start an SIP according to your monthly income. Automate this process by giving your bank the mandate of the Electronic Clearing Service (ECS). This will keep track of your savings in retirement. Budgeting is a great way to get a feel of where your finances are and do not let financial uncertainties get in the way of your retirement.
Buy a health care insurance
Health is wealth, they say. Health care is the most important part of retirement planning. With hectic schedules, late hours, rising pollution and fast-paced lifestyles, health has become a major concern. Good long -term insurance for health care can help retirees avoid dependence on others.
To choose the right health insurance plan read our blog on 6 things you should ask before taking health insurance
Whether you are 22 or 50, the best thing you can do is to start planning as early as possible for your retirement. We hope we helped you eliminated the fear of planning your retirement and made you realize it’s simpler than you think.
Food 4 Thought
“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.
- Alexa Von Tobel ”
DID YOU KNOW
87% of adults say they are not confident about having money for a comfortable retirement.