As you head towards your retirement you might find yourself with a mixture of feelings. On the one hand you are nearing a point where you will have all the time in the world to pursue any leisure pursuits you might desire. At the same time though you are also looking at a time where you won’t have quite the same disposable income, and where you will have to rely on the funds you set aside for this occasion. It’s nerve racking no longer having such a steady income and finding out whether your years of saving have paid off for sure.
That’s why it’s a good idea as you get to this point to make sure that you have accomplished at least a few ‘retirement goals’ to make sure that you’re prepared and have some money set aside. Choosing these goals is very important, so here we’ll look at the sorts of things that can help you as you near your golden years.
Have a Pension Scheme: The most obvious way to prepare for your pension and the most obvious of pension goals is to make sure you actually have a pension of some form. For many people this will mean taking out a private pension, but if you want to be a little more adventurous you can make your own pension fund in the shape of other investments. For instance…
Own Other Properties: Owning properties is better in some ways that taking out a pension scheme (though if you can do both that’s better yet) and is one of the more ambitious, but more profitable pension goals. By owning your own properties you are able to ensure the investment increases in value (which is a relief with so many private pensions going bust) and even let the property out using estate agents to supplement that income. You’ll have to pay tax on the interest though and it’s slightly more hassle – so weigh up the pros and cons.
Prepare a ‘Slush Fund’: A great idea is to have some kind of ‘slush fund’ of your own to dip into only once you reach a certain age. To do this, agree that every week or every month you will put a few dollars away into a savings account – whether it’s $5 a week or $50. This way, when you reach that age you’ll have a huge sum of money that’s not reliant on your pension scheme and that you can dip into whenever you want it.
Pay off Your Mortgage: You no longer have a set, regular income to the same extent that you did previously, and thus it is a good idea to try and avoid having a set, regular mortgage to pay off every month. At the same time if you can make sure you own your own property this gives you a certain security and means that even if you end up broke – you won’t end up on the streets. Further it gives you something to leave to your children. So owning your property is a priority among retirement goals.