3 Things To Consider When Planning Your Retirement

Planning your retirement is a task that should be initiated without delay. Shockingly, as of 2022, more than half of Americans lack retirement accounts. This indicates a significant financial unpreparedness for the post-work phase of life.

Retirement planning is not solely about finances. It encompasses a wide range of considerations that need to be addressed, regardless of whether you’re in your 20s, 40s, or 60s and nearing retirement age.

Will

Depending on your age when you write your will, chances are you might need to keep tweaking it. However, having one in place as soon as possible can cover you should anything happen to you prematurely or before you think you might need it.

Include what you wish to happen with your assets once you pass away. This can be a comfort to your loved ones in difficult times.

You may need to transfer property to the family instead of selling the family home. You will need a Quitclaim Deed to transfer the property.

If you want to leave money to your grandchildren, you need to set up a trust fund. If you wish to leave money to charity, you must name the chosen charity. Be sure to stipulate the monetary amount that is to be donated in your name.

Couple and a will

Finances

As mentioned, you need to consider your finances when planning for retirement. It’s a general rule of thumb for experts that you need to have enough money to cover around 80% of your pre-retirement income to live comfortably.

Right now, even if you’re one of the 50-plus percent of people who don’t have savings, look at how much you need to live off as a minimum. Then decide what you can do to pull those funds together.

Most retirees will receive a state pension (currently up to $4,873) based on contributions throughout their working lives. This means they might not get as much as others will.

Jot down what you will need to be paid once you stop working. Decide if you can afford to live off the estimated state pension if you don’t have any savings. Then, you can adjust your income, spending habits, and savings goals to hope you accumulate as much wealth as possible to support you when you retire.

Living Arrangements

Much like the above 2 points, your living arrangements will likely change depending on many factors as you age and at what age you are planning for retirement. If you’re 62 and looking at retiring imminently, you will have a more accurate idea of the type of housing you will need to support easy retirement living.

Whether this is remaining in your home, selling up and moving to a retirement community, or becoming a care or nursing facility resident to help support you. If you’re younger, however, then you might not know precisely what you might need, and your plans can include anything.

It is still worth considering. Maybe you might want to use this time to travel the world, travel domestically, move closer to family, or relocate to a different state.

Florida is a common place for retirees to relocate to. While this might change as you age, you can still put plans in place that can be tweaked to accommodate your preferences and allow you to live the life you wish for when you retire.

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