Many people refer to retirement as the ‘golden years’ of your life. However, this is only true if you begin planning at an early stage and invest wisely into your future. There are a number of considerations for ensuring that you get the maximum enjoyment out of your retirement, so we’ve compiled a checklist of sorts to help you get started.
Where you’ll retire
Often one of the greatest considerations is whether to stay at home or to retire in a foreign nation. If, like myself, you struggle with the disappointing British weather, then chances are you’ll want to retire in a much warmer climate. However, choosing to move abroad presents a number of challenges and considerations in and of itself.
You’ll need to investigate the cost of living and the value of the currency compared to your home nation’s currency, as this will have either a positive or negative effect on the value of your retirement fund. Similarly, you’ll need to research property values and the likelihood of these fluctuating, as an opportunity to buy property at a low price may present itself. One final consideration should be the strength of the economy in your potential retirement destination, as this will impact upon your quality of life.
When to stop working
The decision of when to quit the working life for good is one that should not be taken lightly, as you’ll need to be certain that your retirement fund is strong enough to support you for the rest of your life. If you plan to move abroad, continue working and then retire, you should investigate job prospects and compare potential salaries to your current earnings.
Investments and financial planning
You’ll need to consider how to prepare financially for retirement, and as interest rates are low and property is no longer as stable an investment as it was, you may need to get creative. Creating an investment portfolio is a great way to not only safeguard your money, but also make returns that could transform your retirement from living life comfortably to the life of luxury. Speaking with a financial adviser is the best way to establish whether or not this is a viable option for you.
Budgeting and contingency
One of the best practices for retirement planning is to calculate your likely income and outgoing from the day that your retirement begins. This will enable you to determine how much you’ll need to save to ensure that you live a comfortable lifestyle. Adding a contingency to this will ensure that you are prepared for unexpected expenses that come your way, which is especially important as your income will fall dramatically.
As part of this you should also consider how you picture your retirement lifestyle, which will have bearing on where you move and your projected expenditure.
There’s plenty more to consider, but by covering these basics you’ll be able to paint a better picture of your retirement and plan for it more effectively. Remember, it’s never too early to start planning for the future.