If you’re getting to the age where retirement is around the corner, or you’re considering whether you want to take early retirement, this article will be of interest. There are some helpful things you can do to plan for your retirement. We take a look at what these are to help you get everything in order so you can enjoy your retirement.
Sort out your debt
Before your retirement, you should do everything you can to get rid of your debt. When you retire, it’s likely that your income will significantly reduce. This can make it impossible to continue to pay off your credit cards, other debts and any interest you’re paying on that debt. Ideally, you want to have as little debt as possible when you come to the age you want to retire. Your pension and any other income after retirement will be there to pay your bills and provide you with money for food and enjoying retirement. You don’t want to have to spend this money on paying back debts. Look into a debt solution if you’re struggling with debt and can’t see a way out before you retire.
Figure out your retirement income
Before you take retirement, you need to work out how much you will get from your state pension and any other private pension or retirement funds. It’s important that you still have enough money to live well and pay all of your bills. Before retirement, some people choose to sell their house and downsize into a more affordable property. This will help to reduce your cost of living and give you more money to spend on enjoying your retirement. A budget that looks at your income vs your expenses is highly recommended when you’re considering retirement. This way, you can identify any particular issues before you lose your income and potentially get into trouble with money.
Trace any unclaimed entitlements
Go through all of the paperwork and emails you have to ensure you have no unclaimed entitlements. Think back to investments you’ve made in the past, were you a shareholder of a particular company, or do you have any forgotten policies or savings in banks? Try to think about each of these and locate them; this money will be helpful during your retirement. Businesses will use asset reunification companies to find you eventually. Still, you shouldn’t wait for this to happen as you could be located after your death and won’t get to enjoy the money during your retirement.
Consider how you’ll use your time
You’re going to have much more free time when you retire. Having a plan and some way to use that time will make your retirement much more enjoyable. You’ll also feel less lost if you have things to do and are surrounded by friends and family. Take a look at local groups you can join and hobbies that may interest you. Perhaps you’ve always wanted to travel to a particular destination but have never found the time. Planning to do this during the first few years of your retirement will give you something to look forward to and help to reduce any anxiety about giving up work. Perhaps you’ve got children and plan to help with looking after your grandchildren. Having a plan in mind will stop you from feeling lost on the day you finally finish working for good.
Review or make a will
If you haven’t gotten around to making a will yet, or your will is out of date, retirement is a good time to get on top of this task. Making a will ensures that your belongings are divided up between the beneficiaries you specify in your will. Planning for your death by making a will and paying into a funeral plan can help you come to terms with the inevitability. When creating a will, you should inform your family members who you used to take out the will and where they can find the documentation. This prevents your will from being lost and not followed when you die. Many companies can help you write a valid will; choose a trusted provider with experience and expertise in the field.