It doesn’t matter how old you are; it is never too early to start planning for your retirement. Age can creep up on you, and you will want to have plenty of money in the bank once the time comes to give up work for good.
A little forward planning could allow you to retire both early and comfortably. If you are unsure about how to do so, read the following six essential tips to read for a happy retirement.
- Start Saving
Shockingly, a third of US workers have less than $1000 saved for their retirement. While another two-thirds reportedly have less than $25,000 to support them throughout retirement, which could be less than one year’s salary for many. To ensure you don’t find yourself falling into the red in retirement, use a retirement calculator to estimate how much you will need to save for a healthy financial future.
- Eliminate Debt Before Retirement Age
Debt can quickly destroy your bank balance during retirement, as you may not have an income to make the necessary repayments. Ensure your golden years are exactly that by aiming to eliminate debt before you hang up your work shoes for good. For example, you should aim to wipe off your mortgage, eradicate loans, and have savings in the bank to support your leisurely lifestyle. You can always get a debt consolidation loan if you need to.
- Find Out the Price of Your Property
You might not have money in the bank, but you could have money tied up in your property. That is why the time might have come to find out how much has my house made me, which you can do by visiting the SunLife website. You can then choose to sell your property to enjoy a more secure retirement. Alternatively, you can opt for an equity release, which will allow you to remain in your home, while enjoying a steady stream of income from the value of your property.
- Learn More About Government Benefits
If you are close to retirement age, you might be happy to learn you could be eligible for one of the many government benefits currently available, which could supplement your income or savings. For example, you could receive a veteran’s pension or social security benefits to make your finances a little easier during retirement.
- Review Your Monthly Cash Flow
Top up your savings by reviewing your monthly cash flow, so you can make the necessary cutbacks to reduce your expenditure. For example, you could save money by reducing your household bills, eliminating unnecessary purchases, and canceling subscriptions. You should then add the money saved directly into your retirement savings so that you can tick your retirement goals off your bucket list.
- Review Your Healthcare Insurance
Older adults are more prone to accidents, injuries, and diseases due to aging. As you are currently contemplating your retirement, you should take the opportunity to review your existing healthcare insurance. For example, if you have employer-provided health insurance for you or other family members, would you still be able to use it after you retire? If not, you will need to secure private insurance.