PLANNING FOR A RETIREMENT?
Is your clock ticking faster? Are you nearing retirement period? If so, is your plan ready? Retirement readiness always refers to one’s financial stability even after his withdrawal from his employment. If you can meet your income goals so that the standard of living remains the same before and after retirement, then that is financial freedom. Financial specialists believe that you need between two-third and three-quarters of the income to lead a life the same as your pre-retirement self did. Not only financial readiness but emotional readiness also equally shares its part.
ARE YOU FINANCIALLY READY?
Your retirement plan must include the amount you require to lead a healthy and comfortable lifestyle in your post-retirement period. For this, you have to calculate your monthly expenditures to live a desired life. Life expectancy plays a significant role in, number of years you are likely to live. From the point of retirement planning, inflation is one such area that is least predictable. Inflation diminishes the buying power of the retiree’s. Never to expect, all these factors can change adversely during your working life. These factors can change that it might be hard to lead a desired life during your post-retirement period. How can you reduce this risk? You should adjust the estimated amount of your retirement documentation. You should know how much you need right now to survive every month? And keeping inflation in mind, which is currently at 3 to 4 percent here in a proper developing country, there is a sound possibility that you will need a lot more money to survive when you retire than you do now. The perfect way to determine your retirement budget is to gather all your expense receipts and identify your current spending, such as mobile bills, electricity bills, credit cards, bills, restaurant bills, and grocery receipts. Gather as many expense sources as you can so that you get an idea of your monthly expenses. Take some course of action and get yourself financially ready for your retirement.
ARE YOU EMOTIONALLY READY?
Your mental well-being depends on the quality of lifestyle after your post-retirement period. You are highly productive throughout your work life. After retirement, you have no 9–5 job and only leisure. A typical lifestyle of a retired person would involve watching television and taking care of grandchildren. The routine you have been following is awful for the brain. When you are not emotionally stable, you are prone to cognitive impairments or geriatrics. Not to mention, but health care has severe financial consequences. Poor mental well-being could lead to a rise in medical expenses. Then you are forced to spend from your savings set aside for lifestyle expenses. That could impact the quality of life, which might exploit the resources you possess. Now you can plan clearly, financially ready is not enough. You can attain emotional well-being and explore leisure activities such as traveling that can keep you engaged. Your emotional well-being is significant if you are aiming for early retirement. Financial freedom is more important than early retirement.
Many retiree’s engage an investment advisor to become financially ready for retirement. But not many used to plan for their emotional readiness. Firstly you should reach out to professional counselling during the last five years of your working life, if required.
REFERENCE: https://www.investopedia.com/articles/personal-finance/021716/10-signs-you-are-not-ok-retire.asp
https://economictimes.indiatimes.com/wealth/plan/are-you-ready-for-retirement-use-this-toolkit-to-be-financially-secure/articleshow/79812325.cms?from=mdr https://www.thehindu.com/business/Industry/are-you-retirement-ready/article34233761.ece
Originally published at https://weekendblogbydk.blogspot.com on April 5, 2021.
