How to prepare for your retirement

Proper planning is the key to ensure a comfortable retirement.

08:31 27 June 2013

Some people may not be looking forward to retiring because unfortunately they may not have enough money to enjoy comfortable golden years.

It would be good to start planning for your retirement as early as you are able to.

• The first thing that needs to be done is to know when you want to retire. You know, early retirement is possible but only if you prepare for it ahead of time. The younger you want to retire, the more aggressive you need to be in saving for your retirement.

 

• Next step is to save. This is the most important step and yet could be the most difficult to do for a lot of people.

If you find yourself living from paycheck to paycheck, this is what you need to do; The moment you receive your salary, automatically put at least 10per cent of your earnings to your retirement fund.

Believe me, you can make do with what you what’s left, as this will force you to let go of the “wants” and stick with the “needs”.

• Invest your money. Find investments tools that you’re comfortable with and those that are aligned with your risk tolerance. This will allow you to maximize the potential of your retirement fund.