Tips For Retirement Planning
President Joe Biden is 79 years old. Warren Buffet is 92 years old. These are just a few examples of men who are still active despite reaching the age when a normal person will retire. Therefore, I believe there is no such thing as "when should you retire." If you are physically and mentally fit to work and if you actually want to work, you can continue working as long as you want. You don't have to retire after reaching a certain age. Some people prefer to retire and enjoy life, whereas some people want to work, this is just a personal preference.
Generally speaking, in most countries, the average retirement age is between 60 and 70. That's when most people retire. The retirement age was created for two reasons, one, to make people stop working so that can live their life peacefully in old age, and two, to allow younger people to join the workforce. However, when the improvement in medicine, people can work much longer than the average retirement age. In my opinion, if you want to retire, you should take the decision based on two facts, one, whether your mental and physical health permits or not, and whether you want to work or not.
Retirement Planning: Are You Entitled to Retirement Benefits From Your Employer?
Government and big companies offer retirement benefits such as provident funds or a pension. if your employer offers retirement benefits, you will have access to money even when you retire. if that is not the case, you will have to build retirement saving yourself. Therefore, the number one tip for retirement planning is to have savings that will help you pay your bills when you no longer can work and generate active income. For retirement, you can either save cash in fixed deposit accounts to receive interest on your deposit or invest in high-dividend stocks to receive passive income.
If you do not have a government job and if your employer does not offer any retirement funds, you really need to work hard to build your retirement funds on your own. There are three ways, one, buy term life insurance of 20-25 years, two, start saving money in your retirement account, and three, buy real estate property. When the insurance policy matures you will have enough money to pay your bills, likewise, when you regularly save for 20-25 years, you will have enough money to live for the rest of your life. Buying a house will not only give you a place to live but you can also rent out rooms and make money.
When you are ready to retire, you need to remember one important thing that is you will not have any active income source. When you do not have an active income source, you need some sort of funds to pay your bull. Therefore, before you retire make sure you either receive retirement benefits from your employer or build your own retirement savings. Having a house can help you after your retirement because you don't have to pay rent and you can still make an additional income by renting your house. You should also pay your all outstanding loans before you retire.
How to Build Retirement Funds
Retirement means you no longer can work and generate regular income by working a 9-5 job. In other words, when you retire you will not have any active income source. If you do not have an income source, you will not be able to pay your bills when you retire from your work. In that condition, you will have to continue working and postpone your retirement. Therefore, you need an income source when you retire. You can build income sources by investing in the stock market r real estate market. You can also create a business that can be run from home.
If you are a government employee, you will get a pension plan, if you work in big corporations and companies, you are likely to get retirement benefits, however, if you are self-employed or work in a small organization, you do not have any retirement benefits, and you will have to save your own retirement funds. When you have a retirement fund, you can pay your bills even when you cannot work to generate active income. You need cash in your retirement funds, you also need liquid assets (assets that can be converted into cash in less than 24 hours).
How much should you save for your retirement depends on a number of things such as the cost of living in your place, your health conditions, whether you live in your own house or in a rented apartment, etc. If you decide to retire in the countryside, where the cost of living is comparatively low, you can live with small money whereas if you retire in a city, your living cost will be high. If you have your own house, you don’t have to pay rent, thus, your living cost will be lower, however, if you live in a rented house, you will have to spend money on rent and living costs will be high.