Retiring is a bellwether moment in any working adult’s life, and the thing for which many of us are working. However, a quarter of us are not sure quite how we’re funding our eventual retirement, let alone what to do during it. Understandably, retirement can be a scary subject – but here are some of the ways in which you can guarantee happiness in later life.
Choose Your Moment
Retirement is an exciting prospect, and it is understandable to want to reap the benefits of retirement at the earliest possible convenience. However, retiring early can also have serious consequences for your retirement fund, and if you aren’t sure you have enough on which to retire, you could be in for a tough time. This is especially true if you still have significant expenditures, such as a mortgage or ongoing fees for any dependents, whether children or grandchildren.
Retiring early is a distinct possibility – there is an entire movement called FIRE (Financial Independence, Retire Early) that is dedicated to the discipline – but you need to know that the decision is right for you before you proceed. Choose your moment wisely.
Whenever you settle on retiring, you need to ensure you have the assets to fund your lifestyle. You will already have reckoned broadly with your financial situation, but here you can look more closely at your outgoings, coupled with any potential income from tenants or savings and investments. Together, you can build an intimate picture of your finances, and map out your years accordingly.
Of course, these calculations are made difficult by the impossibility of making reasonable long-term predictions for inflation, while growing economic crisis in the short term threatens savings across the land. Thankfully, the sooner you look at your finances the quicker you can figure out a solution.
With the above in mind, you may be concerned that your savings and income aren’t enough to carry you through to the things you’d like to experience and achieve. You would not be alone in this worry, nor would you be without any solutions. One solution that is seeing increasing popularity recently is that of the equity release mortgage, which enables those of retirement age to unlock the value of their property as a lump sum or monthly income, to spend as they choose. Their property is sold to recoup the mortgage, but only after they leave.
Choose Your Lifestyle
Retiring opens you up to a whole new range of possibilities, and gives you a chance to really reconcile your life with the kind of life you’d like to lead. What do you want to get out of your retirement? Now is the time to figure this out. Start with the broad strokes. Do you want to lead a more sedentary, laid-back kind of life, or do you intend to spend as much time as possible travelling the world and seeing the sights? The world is yours!