Are you worried that you’re going to end up in rags instead of riches when you retire? Here’s some advice on how to make sure that this doesn’t happen. With the right steps, you can make sure that you don’t end up surviving on scraps when you finally settle down to enjoy your twilight years.
We spend most of our life saving for retirement (hopefully), but what happens when you retire? How do you turn that nest egg into actual income? Let’s take a look at the pros and cons of several retirement income strategies:
Don’t Rely On Your Age
One of the first mistakes people make about retirement is thinking that there is a set age at which you should retire. Most people think that this age is between sixty and seventy-five. However, speak to financial experts and will discover that this is a fallacy. You can retire whenever you want. It’s just a matter of growing the nest egg large enough that you can survive on your savings. How much money you’ll need to save will depend on the plans you have for your retirement. Some people won’t retire until they hit one million in savings. Others will aim to triple that amount. When you reach your goal, you shouldn’t wait.
It’s far better to retire and then move on to the next stage.
Get That Passive Income Ready
If you have savings, there are plenty of different passive incomes that you can consider to ensure that your money continues to grow. For instance, you could think about getting involved in the stock market. When you’re young, you should be focused on penny stocks — high-risk low-cost investments. As you reach retirement age, you can afford to buy lower risk, expensive investments that will grow gradually and are virtually guaranteed to make you money.
Write Up A Plan
Do make sure that you have a plan in place for your retirement. You need to know exactly what your costs are going to be over the next few years. For instance, you may be thinking about travelling the world. Or perhaps you are planning to buy a home in Hawaii? Whatever your plan, work out the cost and make sure you are aware how much of your savings it will eat up. By doing this, you can avoid draining your retirement nest egg completely.
Get Ready To Sell
You might love the idea of staying in your family home after you retire. But we imagine that property is actually far too large for you. You would be far better off moving to a smaller home and taking advantage of the accumulated value of your current property. When you lose your fixed income, the bills become harder to deal with. Buying a smaller home will reduce them significantly.
The money that you gain from selling can be put towards some of the other investments that we discussed above. You should aim to move out of your home early in your retirement as this can be a stressful and physically strenuous experience.
Take this advice, and you can make sure that you are one of the lucky ones. Retirement should be the best years of your life, and if you make sure you have a plan in place, this can certainly be the case.
Retirement Doesn't Have To Leave You In Rags Click To TweetThe best part about Quickle is that you can apply online, anytime. Maybe you’re at home on the computer? Maybe your car unexpectedly breaks down in the middle of nowhere? You can apply through our website, optimised for mobiles, or simply by giving us a simple SMS on 0428 594 936 or via Email customerservice@quickle.com.au
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