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Retirement Planning do you ever stop and wonder if you are on the right track to receive a comfortable retirement?
Unfortunately, some don’t consider the prospect and end up disappointed with the size of the
state pension they receive upon retirement. But with some planning for your future, you can
effectively set yourself up with something better. The reality of the situation is, saving up for
your old age is an unavoidable requirement in this current age. Life expectancy is on the rise, so
after decades of hard-working employment, don’t you want to make sure you can enjoy the
decades of retirement that come after? It’s not as difficult as you might think, especially if you
begin at a young age.
For instance, in your twenties, it would be very helpful to begin paying off any debt you may
have. This may include credit card debt or any other student debt you may have accumulated.
After paying off your debt, which may include personal, home loans or credit card debt- you can
then begin putting away a percentage of your earnings into savings. In your thirties, be sure to
keep an eye on any remaining debts and keep a good budget to keep spending under control.
Now is definitely the time to begin exploring your retirement saving options. First of all, you
should find out whether or not your employer offers a pension plan. If they do, the company you
work for will make contributions on your behalf. This is an opportunity you do not want to miss
so be sure to sign up as soon as possible. Also, don’t be afraid to research the savings options
you have, based on your own personal goals and desires, rather than simply choosing the default
investment option available.
In your forties, continue to build your savings. Increase your contributions to your pension plan.
Your earnings are most likely the highest, and you should hopefully be debt-free by now, or close
to it. Now is the peak time to invest in your future as much as possible. By your fifties,
retirement is becoming more of a reality, and in turn it’s time to get even more serious about
your savings. Take any money you may have had in risky equities and place that money into safer
cash investments. By your sixties, you will begin by ensuring that all debts-including mortgages are
all paid off. You will also want to decide at this time, whether or not to buy an annuity or take
the cash out of the pension plan in one go. Finally, explore your annuity rates and options.
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