10 steps to systematic retirement planning

Planning for retirement explained in simple steps.

09:45 01 November 2014

Among all the things we readily agree to plan for, retirement falls last on the list.  Little do we realise that if we prepare for retirement early, we can retire with style, and enjoy the moment without worrying about the usual matters that come with old age such as financial dependence.

 

Below are some basic tips for retirement planning for Self-Employed, Entrepreneurs, and Business Owners:

 

1.  List down all your expenses incurred for the past two years.

 

2.  Make a list of all the possible expenses you expect to have within the first two years of retirement.

 

3.  Match up the two lists to have a better picture of what you would most probably need come retirement time.

 

4.  Prepare a comprehensive list of all your current resources and liabilities, and then add it up to a list of the resources and liabilities that you foresee you will have on retirement date.

 

5.  Include the approximate Social Security benefits you will receive as part of your resources.

 

6.  Establish the sources of your income (pension payments, dividends, withdrawals from accounts, dividends, etc.)

 

7.  Match up your presumed income, which may be generated from the sources above versus your expected expenses as computed above.

 

8.  If you find there is a deficit between expenses and income, you should go over list of expenses to ascertain the standard of living that will make you happy.

 

9.  If your presumed resources will not be enough to cover the lifestyle you have planned for your retirement then you should take steps to increase it such as getting another job or delaying your retirement for a number of years until you can build up your retirement funds to the level that will be sufficient for you.

 

10.  If physically taxing yourself just to augment your retirement funds is not your cup of tea, make your money work for you by investing wisely.  You could consider increasing your contribution to your nest egg for retirement by endeavouring on a program that will boost your investments.