Whether you’re hoping to retire early or have just got to retirement age, there are several things to organize before you run into the sunset with your pension.
The final decade of your career is integral to your financial stability during retirement, as this is where you can rid yourself of burdens, debt, and assets to make your pension go further.
To help you get started with preparing for your retirement, we’re sharing this guide of things you should probably organize to help you enjoy your golden years as much as possible.
1. Picture your dream retirement
What are you looking forward to most about retirement? Perhaps you have a huge bucket list of places to visit and things to try, or maybe you’re just looking to spend more time with the grandkids. Some people choose to keep a small part-time job or even start their own business. Retirement is a truly personal adventure, but having a vision of what you expect life to be will determine the financial decisions you make in the final decade of your career.
2. Take budgeting to a whole new level
Once you’ve created your initial idea for retirement, you’ll have a better idea as to how much money you might need.
As retirement approaches, review where you’re currently spending money to see what can be reduced and invested into your pension pot. Aligning your current spending and salary with the lifestyle you’d like to live in the future will help you create a nice stash without waiting till the last minute.
When planning retirement expenditure, don’t forget to account for health care, travel, and other financial outgoings that may increase through inflation.
3. Decide where to live
When planning for retirement, your current home and where you want to live in the future should be accounted for. You could save money for retirement by selling your current home and downsizing.
Depending on where you want to live out your days will also determine how much money you’ll need for a good quality of life. You might also want to consider moving nearer family and friends – or the opposite, retiring in a sunnier country!
Wherever you plan to go, it’s a good idea to get the ball rolling in terms of research into the environment, access to quality healthcare, affordability of housing, and any other amenities you’d like to use.
4. Plan for future health issues
Aging is inevitable. And some of us will age more gracefully than others. With old age can come lots of complications and conditions, so it’s important to be mindful about what the future might hold.
Investing in life and health insurance is just part of it. It’s good to prepare with a living will, as well as researching into care homes in Watford or in the area you’d like to reside.
5. Pay off your debt
It would be awful to have to work for longer than necessary to pay off long-standing debt. Or have to use your pension to cover the costs. Where possible, it’s an excellent strategy idea to become debt-free before you retire. That way, all the money you have can be spent on living.