Preparing for retirement can seem complex and challenging, but that does not have to be the case. Even a few small steps, habits, and practices can go a long way in alleviating the fears and anxieties around retirement, and making the transition smoother for you. In this blog, Paul Haarman will talk about some of the ways that you can start preparing for retirement.
Ways to Prepare for Retirement:
Shaking Off Financial Fears:
Ignoring money-related tasks is not going to magically resolve them. So, instead of putting these tasks off, you should face your current financial position. Take a closer look at your monthly income, and compare it to the expenses that you endure. Understanding the larger financial picture will help you learn more about the amount that you need to save for your retirement.
Automating Your Savings:
If you are decades away from calling it a day, saving for retirement might not be at the top of your priority list – especially if you are too busy catering to the financial demands of the present moment. This means that, instead of saving it, you might be tempted to utilize your money to address necessities like groceries and medicines. For this reason, Paul Haarman thinks that it might be a good idea to sign up for an app or program that will pull a certain percentage of money directly from your paycheck and transfer it to your retirement savings account. You will be less tempted to spend off the money that never hits your bank account – out of sight; out of mind.
Listing Down the Things You Want to Do in Retirement:
In order to not fear your retirement, you need to have a reason to look forward to it. Moreover, if you line up the things that you want to do in retirement, you would be more motivated to save enough funds to be able to do those things.
Calculating Your Net Worth:
Your net worth is the number that you get after you have subtracted your debts or liabilities (such as mortgages and other types of loans) from your assets (such as cash, car, house, investments, and money in the bank). Just like taking an inventory of your monthly income and expenses, calculating your net worth will help you better understand the health of your personal balance sheet.
Considering Working Longer:
If you are close to retirement but have the mental and physical strength to keep going for longer, Paul Haarman recommends you to consider postponing your retirement age. Even just an extra year or two of employment and income can help you pay off your debt or meet your retirement saving goals.
To sum up, in order to keep you from feeling overwhelmed about retiring, it is best to start planning for it long before you decide to call it a day. We hope that the above advices by Paul Haarman will prove helpful to you in that regard.