The Most Important Money Matters for Retirees
Even the best laid plans can hit a bump in the road, and once you’ve retired you may find that although you thought you were well prepared financially, rising costs are cutting in to your monthly budget, and you have a lot less money than you ever imagined.
Worrying about money is not something anyone ever wants to do, but it is even harder when you are older and the chance to earn an income has been reduced by your age. Let’s take a look at the most important money matters every one needs to consider, so that you can enjoy a sound and well managed financial future, and stress free golden years!
Calculate your retirement income
And include inflation! One of the biggest mistakes people make is to assume that costs will stay the same, and thy work out their pension plan based on current costs. What things costs today versus what they will cost in 10 years time differs hugely, so when planning for retirement this is something that must be considered.
Know where your money is going
Whether you choose to take out pension plan, have a provident fund or put your savings into a high yield fixed account, you need to know where your money is going. Keeping track of your money is crucial and even if you have enlisted the help of financial planner, you should know where your money is, how much you have and how you can access it at any stage.
Your retirement fund should stay in line with your changing goals and aims. If you want to travel when you have retired, you need to accommodate this, or if you want to buy a yacht or fulfil any other dreams once you’ve stopped working, this needs to be taken in to account. If you’re lucky enough to get great NRL Premiership odds and land a big in we suggest you pop at least a portion of your winnings into your retirement fund and let it grow.
This is especially crucial if you have invested money in stocks and shares. This can be risky, and unless you know exactly what you are doing, you could lose out. Rather stick to sound investments with low risk; although they may have a lower interest rate, you don’t run the risk of being left penniless if something goes wrong.
Remember to give yourself a raise
When calculating your retirement funds remember to factor in a raise every year or so. Just like in the working world, you need to give yourself a raise so that you can cover rising costs, and if you can do this in line with inflation, you’ll always be comfortable.
Don’t be afraid to get advice
A crucial tip and one many people don’t follow. Always seek out professional help if you feel you’re not planning accordingly for your retirement. The advice of an expert is invaluable.