Investing for retirement and effective retirement planning is critical if you want to retire in comfort, as most welfare
schemes for aged care are basic to say the least. And remember that you may be ‘retired’ for up to 40 years –
that’s a long time to require funding to live, when you no longer have a normal income.
Instead you will
need an income from a pension, a retirement fund, stocks or bonds, cash or other investment.
The most important
aspect of saving for your retirement is to start early - the younger you start, the more you will have for retirement, due
to the power of compound growth on investments.
Many countries have a compulsory retirement contribution scheme
where you and/or your employer are required to invest a portion of your salary in a retirement fund which you can only access
once you’ve reached retirement age.
And this is great, but the problem is that many people assume that this
fund will be enough for them when they retire – BUT IS IT REALLY? In most cases – NO. So it’s important
to take retirement planning seriously, so you aren’t left with inadequate funds to enjoy your retirement.
There are two key things you need to think about in terms of retirement planning:
1. What are your Retirement Goals
? - Are you going to travel the world, or will you be just as happy sitting at home knitting? Your retirement plans will have
a significant impact on how much money you’ll need.
2. How are you going to Fund your Retirement
? - Once you know how much money you are going to need when you retire, you can then go about working out how to achieve it.
Research confirms that those who plan their transition into retirement are much more likely to create a satisfying
life-balance. Sound financial planning is indeed an integral part of the process, but there’s much more to consider
than just the dollars.
And of course the best advice here is to see a financial advisor to get the best advice
for your particular circumstances.
Related Topics: Retirement Solutions 4 Boomers
- A site devoted to support the needs and challenges faced by Baby Boomers as they transition into their retirement years
- with solutions for generating a supplemental income, protecting their health and wellness, and adapting to the numerous
lifestyle changes they face in the years to come.