Planning your retirement requires all the support you can get. And what better way to get support than to hear from someone who has walked in the shoes you are about to step in?
For this article, I spoke to a retiree who gracefully retired at 60 from his place of employment five years ago. He shares a few useful tips on the steps to take when preparing for retirement that will no doubt be of help to everyone who is approaching this critical stage.
I have to add that I saved some of the things he said in my personal note list because they were quite the gem!
Let’s hear from him.
Your savings must be surplus
“This means that you must have started saving very early enough, as early as your first job if that’s possible. If you want to enjoy your retirement, the best thing to do is to have a saving that is ideally twenty times your annual salary or more. A fulfilling retirement is based on robust savings.”
Prepare for inflation
“Inflation is a major source of concern for everyone and it hits harder when you are about to exit the active workforce. To combat inflation, you should start investing in assets that will increase in value and generate additional income.”
“To save is not enough; you also need to deal with inflation in the best possible way. This is why you need to ensure that you’ve built a strong portfolio before retiring. You can delay your retirement if you must so that you are confident about your protection from inflation.”
Maintain a modest lifestyle
“Retirement is not an excuse to splurge on everything you want or couldn’t get for yourself earlier. It would be best if you learned to live below your means in all that you do. It doesn’t matter that your benefits outweigh your present needs. Apply the same habit of avoiding immoderate spending that you practised in your early years of employment.”
Be as committed to your health as you are to your retirement fund
“Health is basically wealth. You can’t prepare for everything else and then leave out your health. You don’t want to be caught unawares by a health condition. For retirees, the cost of prescriptions and appointments can become enormous. However, leading a healthy lifestyle can help you avoid some potential costs, which can be a significant saving.”
Lastly, you don’t have to wait until you are old enough to retire to start planning your retirement. You can start as early as possible. Fortunately, Oak Pensions Limited is a call away. Call the Marketing Manager on 09087448661 or send an email to info@oakpensions.com to transfer your Retirement Savings Account to Oak Pensions.
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