Retirement age varies from country to country and also from profession to profession, but one thing that is common is that there is limits to which anyone can be actively involved in the labor force hence the need to make adequate preparation for life after active service.
Irrespective of what someone earns and how comfortable they were when they were still active as an employee or as a business owner, if they are not deliberate about how they want to spend their life after retirement and then go ahead to make plans, they are likely going to retire broke and sometimes live a miserable retirement lifestyle.
If you are fortunate enough to earn good paycheck as an employee or as an entrepreneur, it is very important that you draw up a monthly budget that would accommodate savings for your future life – your retirement. The truth is that beyond drawing up a budget and setting aside some portion of your salary for retirement savings, you still need to be disciplined enough not to draw up from the account even when some financial need arises.
So, no matter the amount you earn or the level you are presently in your career, the best time to start planning for your retirement is from the first day you got employed or from the first day you started your own business as an entrepreneur. Perhaps the best time might just be now, if you have not started making plans for retirement. Now let us quickly go through the 10 best retirement planning tips;
10 Best Retirement Planning Advice & Tips for Beginners
Table of Content
- 1. Start Your Retirement Plans On time
- 2. Choose a Tested and Trusted Pension Fund Manager
- 3. Start a Business That Can Operate without You
- 4. If You Own a Business, Make Good Succession Plans
- 5. Strive to Grow to the Peak of Your Career
- 6. Invest in Real Estate
- 7. Join an Investment Club
- 8. Invest in Your Children and Family Members
- 9. Buy Life Insurance Cover and Other Relevant Insurance Policy
- 10. Make Plans to Pursue a Charitable Course and Your Hobbies
1. Start Your Retirement Plans On time
There is a saying that goes thus “if you fail to plan, you are planning to fail” in essence if you fail to make plans for your retirement, then you are planning to live a miserable retirement lifestyle. The truth remains that the best time to start planning for your retirement is from the very first day you are employed or from the first day you start your own business as an entrepreneur. So, just ensure that you talk to a retirement expert (could be a counselor) on how you can best plan for your retirement.
2. Choose a Tested and Trusted Pension Fund Manager
If you are employed, you would have the option of choosing the pension fund manager that will help you manage your pension. All you need to do is to look through the profile of all the options you have, and then make your choice. One of important aspect that should guide your choice should be the track record of the pension fund manager. No one would want to put his money with a reckless fund manager.
3. Start a Business That Can Operate without You
Even if you keep a paid employment, it is still a wise decision to start a business and allow someone that you trust to help you run the business; the person could be your family member or friend. Also, if you are an entrepreneur, you should also consider starting a business that can operate without you. Truly that is one of the best ways to plan for your retirement. As a matter of fact, if your business is well monitored it can grow beyond your imagination.
4. If You Own a Business, Make Good Succession Plans
One of the best ways to make plans for your retirement as a business owner is to ensure that you make a good succession plan. It is important to spot at least two or more employee or family members that you can groom to take over the business from you when you retire. The joy of any business owner is to see his or her business grow beyond him or her even after retirement. So, ensure that you invest in training the person you choose as your successor and also expose the person to all your trade secret.
5. Strive to Grow to the Peak of Your Career
The fact that you are going to retire some day should be the motivating factor for you to strive to grow to the peak of your career. The truth is that, the higher you grow in your career, the higher you earn and in most cases the less you work. There are loads of benefits for top executives in every organization. For example; if you are a lecturer, it would be to your best interest to grow beyond a lecturer with Masters Degree to become a professor in your field.
6. Invest in Real Estate
Investing in real estate is yet another good way to plan for your retirement. The truth is that it pays to live in your own house after retirement as against paying rent after retirement.
7. Join an Investment Club
Another way you can plan for your retirement is to join an investment club. With investment clubs, your money would be working for you long after you have retired.
8. Invest in Your Children and Family Members
No doubt if you invest in training and empowering your children and other family members when you are working, they are most likely going to take care of you when you are retired.
9. Buy Life Insurance Cover and Other Relevant Insurance Policy
Buying life insurance and other relevant insurance cover like health insurance cover et al is yet another way to preparing for your retirement. Hence, ensure that you speak with your stockbroker to advice you on the best insurance cover that will be suitable for you during retirement.
10. Make Plans to Pursue a Charitable Course and Your Hobbies
Another very important way to enjoy your retirement is to make plans to pursue a charitable course once you are retired. It could be coaching a local community soccer team; it could be a volunteer counselor or any area of your interest. The truth is that one can get very bored in retirement if you don’t make plans to get engaged with some less demanding activities during retirement.
There you have it, top 10 retirement tips that can guarantee you a comfortable lifestyle.