after retirement

What We Need To Think About When It Comes To Retirement

Some people forget to think about their finances or what life will be like when they hit retirement age. It’s understandable, of course. When we are in our twenties or thirties and so on, it can seem so far away. But time creeps up on us so quickly and before we know it, we will be about to embark on the next chapter of our lives, the retirement period. The golden years as they say. There is nothing to worry about when it comes to this stage in your life. In fact, with careful planning and consideration as early as possible you can build up quite a comfortable life with that period. But how do you go about making sure that you secure this time in your life? So I thought I would share with you some of the things to think about to better prepare yourself.

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Investments

One thing you could consider at any age is the investments you make. Investments could be anything from buying property and renting them out to investment savings or stocks. Some of them may be riskier than others, for example, stocks can go up as well down. But investment in property can be a safe option. Of course, one major investment to consider would be your own home that any people consider buying. It can be your biggest and only investment, but it one you should definitely try and do at your earliest opportunity. If you are considering buying a property you may want to have a chat with a mortgage broker like Altrua Inc. which could be a great way to ensure you get a good deal. After all, it is one of the biggest investments and purchases you make in your lifetime. Many people considering buying more than one property and rent them out. You could choose to buy in the same country or even same town you live in, or you could buy a property abroad and do holiday rentals instead. You can make a decent amount of money over a long period. Once the property sells, you can bank the profit and live quite comfortably.

Where you might live

Living in your existing property may become difficult the older you get, and it proves to be a great investment as you could have potentially seen the value of your home rise. Many people choose to release some of the equity out of their home and that could totally finance your retirement plans. However, if you decide to stay, the equity you could release could be used towards making home improvements to make the house suitable to see out your days. This could make your existing property more suitable for your needs. which could be much more suitable. You have many options to consider as you get older. It might be that you install a stair lift that will help you get from one floor to another. It might be adding simple features like handles for the bathroom or near chairs to help you elevate yourself from certain positions.

Finances

The moment you get a chance it’s worth spending some time thinking about pension options for when you hit retirement. This tends to be one of the most popular ways people finance their retirement living expenses and, of course, the way they spend their time. You may be fortunate to have a pension from your employer which sometimes can be quite lucrative. But you may also want to consider a personal pension to cover you further. It doesn’t take much to invest into a pension but could be worthwhile to you in the future to live a more comfortable lifestyle. However, if pensions confuse you, and I can understand why they might, then take on the principal of putting a little aside each week or month. It doesn’t have to be much, just an amount that you won’t even miss, and over the course of the years to come the amount will soon add up into a nice little pot of money for your retirement and future. You could also choose to invest more regularly, perhaps let a direct debit leave you account every month into a savings account that can’t be touched. Again it is worth setting the amount to something affordable so that you don’t struggle as you save. The idea is that you end up building up savings without even realising you are doing it. Image and video hosting by TinyPic
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Traveling the world

Once you hit retirement, you may wonder what to do with your time. An option to consider would be to travel. While you are working, you may not have had much opportunity to see many places. Most people only get one holiday a year. Of course, right now your priorities may be different. You might choose to focus on your career more. But retirement gives you that extra time to consider doing something different. Maybe you have a bucket list that you have been adding to, or right now, it might be worth jotting down some of the places you want to see during your lifetime. It is a great way to get excited about the future, and while you may not save all of those destinations for retirement, it certainly gives you the incentive to make the right financial decisions now to make that retirement plan a reality. It is also the perfect opportunity to see the world with the special person or people in your life.

Making the most of the time with your family

Finally, retirement gives you the chance to spend some quality time with your family and closest people. This is where you have a great chance to make some amazing memories with the people that matter most. As hard as it may be to think about, there will be a tie where you will have to conduct a will. This will be your chance to make sure your family is taken care of and the items you want to be passed on go to the right people.

It’s not always pleasant to think about our future, but with careful consideration, it could be the best years of your life.


Are You Going To Work Beyond The Age Of 60 Because You Want To?

More than one in five retirees continues to work even when they have gone well beyond the age of 60. A good number of these retirees will not be in this condition if they didn’t get stuck on a poorly-paying annuity plan. According to a recent survey (by Retirement Assured), life is definitely not slowing down for a lot of people over the age of 60 as more than a million retirees are currently doing what they can to boost their retirement income. The most common way through which this is achieved is by starting a business or pursuing a dream job. The study showed us that 18% of these individuals are working beyond 60 years of age because they cannot afford to rely solely on income due them from their retirement savings.  The study further showed that 43% of people who are aged 60 and above have to watch their spending each day, doing a great deal of budgeting in the process while another 19% of individuals are still working deep into their later years.

Many of the retirees who are working today or set up a business for themselves later in life do so because they found an opportunity and had to embrace it and others are doing something they have always wanted to do all their life. However, the study shows us that over 18% of the retirees have to work because they need the income. One in five of this group even find themselves with more problems than they ever had during their more active life. Of course it is great seeing the number of retiree owned businesses blossoming well be it travel, dog walking or consultancy but it is important for people who are working at an age when they should be enjoying their years of hard work to be sure that they are doing it for the right reasons.  The purpose of retirement gets defeated when you have to work deep into those retirement years because you do not have any other choice.  This explains why individuals who are nearing retirement must make sure that they have secured the best possible type of retirement income they have built up over their working life.

One of the ways through which retirees set up retirement income for themselves after retirement is to purchase an annuity contract. Purchasing this contract is definitely one of the most important decisions you will ever make in life and so you need to ensure that you have considered all options possible for your individual situation.  In getting an annuity deal, factors like where you live, your state of health and the age of your partner can impact the amount you will end up receiving. Buying an annuity is far from other such financial contracts (car insurance of mortgage). This is  because these other commitments allow you change your mind if you get things wrong but annuity contracts cannot be altered once they kick in, showing you the importance of ensuring that you get things right at the first time of asking.

Here are four steps to getting a good annuity deal:

Talk to an annuity specialist 

This is the first step you need to take even in the presence of the growing number of DIY schemes that help individuals make annuity decisions. If you can easily and comfortably make decisions that you won’t regret later on then of course you can avoid making out time to see an annuity expert. But then again, how many individuals have this sort of knowledge? A good number of people are put off from consulting annuity specialists due to the fees they may have to pay. However, this isn’t a good reason to take a massive gamble on an annuity purchase. You may lose more than that nominal fee in the long run and again, do you know that the supposed DIY sites get a commission from the annuity company you end up with? Specialists like Annuity Rater are experts in the annuity field and are worth the initial investment instead of gambling on a DIY policy. Expertise in this field is advised so you can make the best decision possible.

Have a look at the annuity options available to you closely

Before you settle for an annuity plan, you need to be sure you are fully aware of the pros and cons of each type of annuity. This will help you know which ones apply to you more than the others and also reduces the chances of making a mistake. With proper weighing of the pros and cons, the only other problem you should be worried about is choosing options that are ill advised. This is where an adviser will also be of immense help. It is very easy to mistake certain options as very good only to find out much later that it reduces the possibility of you getting value for money before you pass on.

Don’t keep away your health issues

Hiding your health issues can rob you of as much as 50% more income in some cases.  Annuities are not like life insurance so you don’t have to hide your health conditions. Again, even the smallest ailment can increase your retirement income so do not wave off any condition. Smoking, obesity and deep snoring are all common conditions that can earn you reasonable increments in annuity income.

Shop around extensively

Shopping around is what helps you ensure that you are getting the best possible deal from your annuity provider. There have been instances where individuals got over 25% increments in income by looking elsewhere for annuity contracts under the same conditions. Shopping around is a hassle for the average individual though so working with an annuity expert is still the best way to go.

By painstakingly following the above steps, you can be sure that you will never have to go back to working in your 60s unless you are really happy doing it and it is not just for the money alone.

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James Richings is a 26 year old writer from the UK. He enjoys writing about a range of subjects that interest him and has published works on a vairety of topics. To find out more about the author, please follow his twitter here.


Sound Financial Planning for Your Post-Retirement Years

Sound Financial Planning for Your Post-Retirement Years

America is busily preparing for the expected rise in retirees as more baby boomers exit the work force each year. As such, many of our financial gurus are gearing up to help educate and prepare this segment of our population towards maintaining financial solvency and independence for longer periods of retirement.

Preparing your budget for your post work days is not as easy as it seems. Aside from the fact that you are reaching a more fragile age, you are also losing out on your work which means no more monthly income. This is precisely why many of our more mature population are dreading their retirement years, but financial sites like TotallyMoney.com explain that there is a way for retirees to side step becoming financially challenged in the future. The secret lies on how you prepare for it.

Become Debt Free

Almost all future retirees will have accumulated some sort of debt, whether it is for their home, car, business, or from their credit cards. Experts agree that paying off your debt while you are still employed is critical to ensuring a more secured future. More often than not, many of our retirees money still goes towards paying down their debts, which leaves them with very little to live with. Before your twilight years start to loom ahead, it would be best to carve out a plan to rid yourself of all your debts and make enough room to save a portion of your money towards retirement.

Shop Wisely

Gone are the days when you can still get away with luxurious spending. As you prepare for retirement, it is best to substitute indulgence with longevity and practicality. Invest in things that will retain their value in years to come. Instead of splurging in a hot sports car, opt for a safer car with great gas mileage.

Invest in Insurance

As you look towards your retirement, it will be beneficial to research life insurance policies for 50 and 60 year olds. This type of policy can safeguard and protect your spouse and children in the event of your death.

Save Up for your Future

Money has always played an important role in your life and it will continue to until the very end. Keeping a portion of your monthly earnings in the bank towards retirement is essential to ensuring that you can stay comfortable throughout your non-working years. It is essential to factor in the possibility that you could live for an additional 30 to 40 years after retiring, which means that you should probably save more than you originally budgeted.

Retirement is the time for you to enjoy and reap the rewards of your hard earned labor. Careful preparation is essential to making this possible. By keeping in mind these simple steps, you can face your retirement years with excitement and optimism.

For more great tips from totallymoney.com, stop by our website where we offer detailed information on obtaining life insurance over 50. You will also find many personal finance articles to help educate yourself on credit and debt practices that can save you money and help you build a sound retirement plan.


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