Partner Article

4 Tips to Prepare Yourself Financially for Retirement

Everyone dreams of the day that they can retire, never to work again. Retirement however is not all fun and games for most people. Many work their entire lives only to learn that they simply cannot survive on what they have. Others learn that they need long term care or care home assistance and simply do not have the finances to support themselves or pay for their care.

• Before it becomes time for you to retire, it is essential that you learn ways of preparing yourself financially for this time in your life. Here are a few tips that will help you to be better prepared for your golden years and perhaps spend those years a bit less stressed out.

  Start Saving Now – Even if you are barely 20 years old, saving early is essential in being completely prepared for your retirement years. No matter how old you are, start a savings account if you do not already have one. Of course, the younger you are the more money you will have socked away when those golden years arrive but it is never too late to begin saving a bit here and there. If you are past thirty, choose a higher interest yielding savings to ensure that you have a larger sum available when you reach retirement.

• Plan Ahead – You will need to consider all of your living expenses for when you reach retirement age. Think about your cost of living and be certain that you factor in for inflation. Prices are not likely to be as low in 20 years as they are now so you should be certain to allow for rising prices when you determine how much you will need. Consider also the possibility of long term care and be certain to calculate an amount of savings that will cover these costs if necessary.

• Plan Again – You will also need to plan for the length of time you will need your savings. Check on the life expectancy and think about how much you will need per year for each year of expected life after your retirement age. If you are retiring at 70 and the life expectancy for males is 85 then you will need enough money to last you for 15 years. Take into consideration your general health and immediate family members’ longevity when determining how long you will need to plan for.

• Calculate – Finally, you will need to do a bit of math to ensure that you stick away enough money to last you during your retirement. When you are doing your calculations, think about how long it will take you to save the amount of money that you need. This will tell you how much you have to save regularly in order to retire comfortably. Choose a variety of options when putting your money away as well. For instance, you could have a savings account as well as a retirement account and a few stocks and bonds to add additional retirement income.

This article was written by Cheselden Continuing Care, the leading review specialists of care home claims in the UK. Visit us at cheselden.co.uk to learn more about continuing health care.

This was posted in Bdaily's Members' News section by Jake Hall .