Why is Retirement Planning Necessary?
The significance of retirement planning cannot be underestimated. Nobody
likes to work forever and there comes a time in life when advanced age and
natural limitations of body and mind prevent a person from working and earning.
It for times like these that savings and investments made in the past come
handy. Retirement planning entails making adequate provisions for the future –
if you retire rich, you retire happy. This also implies that you have adequate
time and resources for activities that you could not fully enjoy during your
prime years – travelling, spending more time with friends and family, joining a
hobby class, gardening and being a part of community services. Naturally,
indulging in such activities without having to report to work is possible only when
you have adequate funds and these are saved through a comprehensive retirement
planning.
For a comfortable and stress free retirement, it is important not only to
have sufficient funds but also to live debt free. If you have mortgage loan to
pay off, huge pending credit card bills and other debts to pay, all your
savings might get drained in such payments. This is why your retirement
planning must include a strategy to pay off debts at the earliest.
Retirement planning actually starts with setting clearly defined life
goals and putting together a financial plan to achieve those goals by the age
of retirement. Savers should plan early in order to take advantage of compound
interest and avoid financial risk. The greatest risk to a good retirement is
the possibility of outliving your money. But an effective planning and the
right knowledge of good investment options can prevent such predicaments.
Individuals planning for retirement can prepare a list of goals that
they wish to achieve while couples can get together, compare notes and make compromises to ensure that they do work towards
similar end points. Couples with children and grandchildren also need to write
a Will and decide upon the division of their property and assets after their
death. In fact estate planning and writing of Will is important in all
retirement plans. Even the individuals who may not have an immediate family
need to make a plan about the distribution of their assets – lest any decision may
be taken by the government as per existing laws.
Retirement planners have to calculate the expense of accomplishing their
respective life goals and retirement dreams. You not only need to add up the
total costs in today's monetary value but also estimate future expenses per
inflation adjustments. It is obviously not possible to plan an absolute amount
of money or regular income that may be enough to live comfortably and pursue
different interests during retirement. But investing in different plans, real
estate, equity and gold may be helpful. Old age may also bring health problems
or a general need for domestic help – it is important to plan for such contingencies
and unforeseen health issues.
At Prosperous Retirement Planning, our goal is to help you retire rich,
retire happy – we help you build wealth towards prosperous years of retirement.
If you are looking for guidance on protecting your assets, leaving a legacy,
estate planning and most importantly building wealth for retirement, contact a financial
coach today at Prosperous Retirement Planning.
Call us at (+44) 08450532813.