Tips to plan for your retirement

It is never too early to start thinking about funding your retirement years.

08:53 21 December 2013

We all need to think about retirement at some point in our lives, and the sooner we begin planning the easier it is to meet our future goals. There are many points to take into consideration when you plan for retirement, and it is a good idea to research the various options.

• Annuities—many people expect the same increased costs for annuities that they would receive when trying to obtain a life assurance product. In reality, people with health problems are often surprised to find out that their premiums are lower than expected and their payouts are better than anticipated. This is due to the fact that the annuity will not be paying as many years as it would be for someone in optimum health.

 

• Changes—there are companies that will try to entice you to make changes in your retirement plans, but it is important to carefully research the options that have been presented. It is also probably best to consult with a financial professional who can give sound advice about whether or not you should make a change. Making hasty changes could put your retirement funds at risk.

 

• Budget management—in addition to planning for retirement, it is essential to take care of debt. Freeing up more cash in your monthly budget could give you more money to put into retirement so you have the opportunity to set aside more than your actual goal to compensate for potential savings issues or give you additional financial security. Many changes occur during our lives and we cannot anticipate them all, but getting out of debt can ensure that you will be able to maintain your contributions.

 

• Use resources—one of the best things you can do is research and talk with a financial advisor to make sure you have a solid retirement plan.