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.