Simple but Practical Retirement Tips

This retirement tips should help you in your retirement planning,

• Start planning as earlier as possible.
  This is even important for someone who likes to put his money in the riskier investments. You cannot afford to be in the riskier but more profitable projects when you are nearing retirement because you will not have enough working years left to build up your capital should you lose it.


• Assess your retirement income realistically
  . Source of income on retirement include your pension, savings, interest from cash deposits, dividends from company shares (or unit trusts) and any lump sum from insurance policy which has matured.


• The number one rule regarding savings is to pay yourself first.
  So every month when you get your pay cheque, bank I a certain sum for your retirement nest egg before you do anything else with the rest of the money.


• Ideally you should plan that your housing loans, life assurance premiums and financial responsibility towards your children end when you retired.


• Set up an emergency fund,
  a sum of money readily available, just in case you need cash in a hurry. This is to avoid dipping into your nest egg in case of a sudden demand.


• Consider moving to a smaller and less expensive house
  since you are probably do not need that extra space as the children have left home. Aside from saving on the expenses of running a big house, the difference between the sale price of the old house and the purchase price of the new place can be most welcome.


• If you plan to get another job after the company has retired you, you should make contacts whilst still working.
  For example, if you are an accounts executive you should make contacts with those who are able to give you a job as an accounts clerk after retirement, if not on full time then on a part time basis. Alternatively, they may allow you to work from your own home. Likewise, if you are going to start your own little business then the contacts will come in useful.

I hope this simple retirement tips can help you planning what kind of lifestyle to want to be later on.