Retirement Planning – What are the steps?

Retirement is something we work towards and look forward to. Being able to kick back with no worries and enjoy financial security is a blissful feeling and for this very reason, many institutions offer retirement plans to individuals to help with planning for the future.

Many people only start to think about retirement planning closer to retiring but this is not recommended as planning should begin as early as in your 20’s.

These are some steps we think are important for any retirement plan:

1. Set your retirement goals – Every plan requires realistic goals and retirement planning is no different. These financial requirements should be based on your expenses and the quality of life you expect to enjoy during retirement.

2. Calculate your expenses – Expenses never stop, even in retirement. This is why it is crucial to take into consideration all possible expenses you expect to incur during retirement and factor these costs into your plan. More expenses would require either larger allocations or a longer timeline to achieve your goal.

3. Have a timeline – Your timeline to allocate the funds needed for your retirement is based on how soon you start, the amount of funds you can set aside per month and your overall financial goal. The sooner you start your retirement planning, the quicker you can reach this goal and the shorter your timeline may be.

4. Pay off your debts – All other debts should be paid off fully before starting your retirement savings plan. This allows you to allocate and save freely without the possibility of having to use your retirement fund to pay off any debt. These debts can include mortgage, car loans, school loans, and hospital bills.

5. Manage your retirement income – Lastly, manage your retirement income! At this stage you should be completely frugal with your spending and properly allocate your finances towards your needs. Your retirement income is meant to last you for the rest of your natural life, therefore it should be used wisely.

Interested in Retirement Planning? Contact Guardian Life Limited at 1-888-FOR LIFE (367-5433) for more information today!

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