Retirement is something that people often do not focus on too much but it is important to start planning as early as possible so that you can ensure financial security as well as find ways to enjoy this special time of your life as you wish. So, how can you ensure financial security throughout retirement? Read on to find out.
First, you need to think about how long you have until you retire as this will affect how you go about saving. Obviously, the earlier that you start preparing the better, but it is also important to state that it is never too late to start so do not worry if you currently do not have any kind of savings or plan in place.
How Much Should be Saved
You then need to think about how much money you need to save for your retirement. You will receive a state pension but most are unable to live comfortably on this alone so you want to consider what your target retirement income should be to lead the lifestyle that you want. As a general rule of thumb, people tend to try and retain between half and two-thirds of their pre-retirement income.
Can I Retire Now?
Many people will also wonder if they could retire now or in the near future. To figure this out, you need to work out how long until your state pension starts and whether you would have enough savings and/or investment returns to manage the period in-between. Many people look into passive income streams as a way to retire from their main job and to still receive money each month which can be smart.
Following this, investments are a smart way to build wealth while you continue to work and to provide income in retirement. In terms of prolonging savings through retirement and spending without worry about money running out, you need to work out your personal safe withdrawal rate as explained by Georgina Fry, a Saunderson House Chartered Financial Planner who states that “the personal safe withdrawal rate is crucial to any retirement conversations”. London-based financial advisers Saunderson House can help individuals to work this out and plan their finances so that they last and allow people to lead the lifestyle that they want in retirement.
Retirement is an important part of life and one which needs to be carefully planned in terms of finances so that you have enough money to last and lead an enjoyable lifestyle during this important time.