Are you 50 years old and looking forward to your impending retirement?
Have you got your retirement years well planned and mapped out?
If not, then you are going to need to read our Essential Retirement Planning Tips For 50 Year Olds to help turn your best years into your greatest years.
1. Pay off all debts as soon as possible.
Debt is a killer, quite literally. People have died from heart attacks, bad health brought on by the stress of being in debt and in some cases, commited suicide because of debt.
It is a noose around a person’s life which takes some removing. A noose which feels like it is made from a ship’s anchor chain, the kind seen on huge majestic ships like the Titanic.
Debt can drag people down, into a non-stop spiral of hard work, misery and depression. Debt is a cycle of working hard to pay off the debt in a soul destroying prison of ‘same old same old’.
The last thing anyone needs when they are about to retire is to be in debt. So it is important that debt is all paid off before you hit retirement otherwise you could be working a lot harder and a lot longer than you would like.
2. Figure out how much money you will need to live on when retired.
This is something very few people do as part of their retirement planning. Most people bumble along and drift from day to day not giving the future any thought until it arrives as the day following yesterday.
But it is essential that you know how much you are going to need each month.
Ok, so you don’t know how long you are going to live and so you cannot accurately plan each month but you can have a fair idea. With the oldest man currently being Robert Weighton, of the United Kingdom, aged 111 years, you really do not know how long you have.
But you can work on the fact that the average life expectancy in the UK is 83.6 years for women and 79.9 years for men. You can use that as a guide.
Decide when you are going to retire, and figure out how much you will need each month for ALL of your outgoings including treats and fun activities upto that average life expectancy age… and then add a further 25% on top to cover for any years that you live beyond that time.
The more you know now about your retirement, the better you are to manage and maintain that figure.
3. Prepare for the unexpected and build a rainy day/slush fund.
As well as knowing how much you need to live off per month for the next X amount of years you need to factor in that life throws all kinds of issues at you and you will need to have a slush fund ready to help whenever something happens.
Obviously, you will not know what is going to happen or how often, or how bad stuff will be when it happens nor will you know how much money you may need to cover it, but having something put aside to ease the pain will help greatly when situations do occur.
4. Set a budget, review your outgoings and reduce your spending.
This one is fairly self explanatory, unless you have oodles of spare money, to make the most of your retirement you need to know what you are spending your money on. Review everything you are paying out for each month and using the figure you came to in point 2, set a monthly budget and try not to spend any more than you can afford.
If you need to cut back on spending then do so. One of the biggest issues people have when it comes to money is that they spend more when they shouldn’t which can leave them in a mess later on.
By that, I mean, when the bank account is healthy, people can be confident and blaise with their spending, but that ‘extra’ spending you do when you are ‘flush’ will leave you more skint when you are not so ‘flush’… which is usually the time when you need money.
A bank account is a reflection of your spending habits. How much or little you have in your account at the end of the month reflects your spending and saving behaviour.
Set a budget, reduce any excessive spending to meet that budget and make sure that you know what you are spending your money on each month.
5. Increase your saving and investing.
No one knows how long their retirement will last, you could be like Dame Vera Lynn who has only recently celebrated her 103rd birthday. With better health care and better food available these days, people are living longer than normal and that means people are enjoying longer retirements.
To ensure that you are covered for a longer retirement it is wise to increase your saving and investing efforts. What money you have spare should be invested or saved to cover those unplanned years ahead.
There are many great investment opportunities which will pay you back more than simply leaving your money in the bank growing interest. One such great investment giving up to 11.2% return on your investment is peer to peer lending with Kuflink.
Read More Here:
Make Up to 11.2% Return On Your Savings With Kuflink Peer To Peer Lending
Another way to increase your investment and savings is to invest in yourself and start a home based business or take a part-time job, which leads us nicely on to the final point.
6. Consider part-time work or start a home based business when in retirement.
During your retirement you are going to want to do something to occupy your time. Yes sure, you can go fishing, travelling and play all the golf you fancy, but it will become costly and even tiresome. It may get boring.
You will need to focus your attention and energy on something. It is vital for your wellbeing and mental health. Sitting around doing very little other than bumbling from one thing to another will not help you in any shape or form. Unless you are one of those people who love to constantly ‘chill’ and do very little, boredom will set in and that can be dangerous.
With people living longer and with better health, retirement is a great opportunity to work on a home based business.
Read More Here:
Life Expectancy In England Up After Years Of Austerity And NHS Cuts
There are so many great ways to make money from home these days, a person is really spoiled for choice. From making and selling items on eBay to trading sports – get a copy of our free guide to Sports Trading Here:
The Kickass Guide To Sports Trading
Working on a project will keep your mind and body active, which is vital when you are aging as it helps to ward off specific brain diseases. Not only that, it gives you the opportunity to meet and mingle with people – even if you chose to do an online business there are ways to chat with clients and customers – plus it will generate extra income which you can spend on those important luxuries you enjoy. And help increase your savings to help with your slush fund and extra retirement years.
We live in the greatest time in the history of mankind for making money. Money can be made from the comfort of your own home using the internet allowing you to connect with and sell to people all around the world.
Retirement is your time, make it count, make it an enjoyable time, not one of struggle and misery. Check out our other posts and guides as you will find plenty of ways to make a second income from the comfort of your own home.