Retirement Preparedness: What You Need to Know About Retiring
With retirement just on the horizon, it’s time to get your financial planning into high gear and make any needed adjustments to ensure an easy transition. Some look forward to this and welcome retirement as a chance to do the things they have been dreaming about and for others, they simply like the rest after having a long career. For everyone there is likely to be a mixture of feelings and thoughts as you start on this new venture into uncharted territory. This is why Bourse has compiled a simple and easy 3 step checklist for all retirees to take note and to follow.
1) Build Up Your Emergency Fund Savings Account
Wondering how much seniors should set aside for emergencies? Younger workers are told that their emergency funds should contain four to six months’ worth of living expenses so that they’ll be covered in the event of a job loss or any unfortunate circumstance. Seniors have it a bit differently since there’s no expectation of income in retirement — that, and the fact that National Insurance money as well as Pension funds acquired over the years is the only secured income stream once you’re old enough to claim it. So be sure to prepare for those rainy days by establishing an emergency fund savings.
2) Make an Investment Plan
The great thing about creating an investment plan is so you have a disciplined approach to follow throughout your retirement. An investment plan is similar to a job description. Once you know the job you need your money to do for you it becomes easier to select the most appropriate investments that suits your lifestyle.
3) Formulate a Retirement Budget
Understanding your upcoming retirement budget puts you in a place where you’ll be able to make smart choices about the retirement lifestyle you want to have. You may find there are investments you are willing to make that might enable you to do things like retire earlier, travel more in retirement, or have more money for fun and hobbies.
Prepare for the unexpected now and you won’t get caught off guard later. Taking time to consider how you’d pay for everything from minor issues like a leak in the roof, to serious ones like a grave illness will help you weather those storms when they come. Discuss the big issues with your family or those closest to you, and start planning today!