After working so hard for so many years, many retirees expect to have a very comfortable life after retirement. Most employees who are pensionable feel at ease knowing that they at least have the pension to keep them comfortable after they retire. However, this has not been the case for many retirees; most have retired only to find that they have very little to live on making life quite uncomfortable. Pensions for state public employee continue to face serious issues with funding and this has left many retirees frustrated because the features and benefits expected are no longer guaranteed.
In reality, if you want to have a comfortable life after retirement and you wish to be independent rather that dependent on your children, it would be best that you start preparing for that phase of life early enough. It helps to have savings and investments to back up your pension and any social security benefits you are entitled to. You can only say that you are ready for retirement when you have much more than pension to look up to for that comfortable living. Fortunately, it’s never too late to start preparing for retirement; there are so many small changes you can make today in preparation for a good retirement.
What to do
When preparing for retirement, the first thing you should think about is a personal savings reserve. This will save you from rising living expected that can render your pension insufficient. You also need to remember that social security and pension benefits can only cater for up to 60% of your needs and hence the rest would need to come from income or personal savings.
The other thing you must start thinking about is your health. Remember that as you age, you become more prone to illnesses and they can cost you quite a bit of your pension and savings that you have. Start adopting a healthy lifestyle today and you will have a long life with fewer health issues to worry you and your finances. The last thing you want to do is to run out of money in your last days when you actually need it the most so make every possible plan today to secure that future.
Start reducing debt and as much as possible, avoid getting into any new debt. This is a great approach, especially if you are a decade or two from your retirement. Paying off your debt early before retirement secures you from worrying monthly bills when you retire. Get your debts together and come up with a strategy to start paying them and get your expenses in line so you are able to avoid incurring any new debt.
As far as social security goes, it is advisable that you don’t start collecting your benefits until it is absolutely necessary. These are tempting benefits because they can be enjoyed even before retirement, but it is best that you delay the collecting for as long as you can so you can use them when the need arises. The longer you delay, the larger the monthly check.