For most people, retirement is not associated with an incredibly enjoyable and fun pastime. On the contrary, everyone realizes that it requires careful planning and preparation. If you are close to this period and you have some difficulties with finances, then most likely you will have many problems … Many pensioners are forced to work, because they simply “do not have enough strength” to leave their workplace because of fear of lack of money.
Nevertheless, I will list five important steps that will make you ready “with a clear conscience” to leave your career behind, knowing that you definitely will not have material.
1. Take Advantage of Your Work
You need to know what advantages and features your current job has. You can go to the employment center and discuss with the consultant whether your employer gives you what is required. If you or a member of your family needs expensive medical treatment, then it is worth taking care of while you are still working. You should find out what the policy of the company you are working on is for vacations and sick leave.
If it turns out that several vacation days remain before retirement, you must either use them or receive monetary compensation. The advantage of official work is paid leave and sick leave. Mark Hebner (founder and president of the corporation that offers the services of financial consultants Index Fund Advisors) says: “Imagine all your earnings in two parts: pay for actually worked time and pay for sick leave / leave. If you have unpaid vacation days before retiring, then you must claim compensation from your employer. ” I note that Mark is the author of the book: “The program of economic recovery in 12 steps for investors.”
The majority of workers thought at least once about what kind of pension payment they will be given by the state. Naturally, it depends on where you worked all your life. Therefore, it is worth considering now whether you will be satisfied with life for such a pension fee in the future …
2. Decide when to start saving money
Of course, people of different ages have different priorities: the child puts money back on new toys. A teenager, for example, on a new bicycle. The boy is at his apartment. A man – to educate their children … And only in old age people realize that they have no “stash” for retirement. Naturally, everything has its time, but I still advise you to think about the pension life, while you are still far from it.
3. Pay off with all debts
Naturally, you should pay off debts. For most people, it is most difficult to pay mortgages. To deal with all this, Charlotte Doherty (founder of Dougherty & Associates) advises: “Try to deal with your debts as quickly as possible. Yes, you may have to deny yourself something in the present, but in return you will not have any problems with arrears in the future. Avoid extending loans. Remember that paying out loans at retirement age can be very difficult, so think twice before taking them at an adulthood. ”
You also need to be sure that before the pension you have paid off all kinds of other debts (loans for cars, equipment, training of your children in higher educational institutions).
Regardless of the type of debt, you must get rid of it. Studies conducted in 2015 tell us that in America, most of the pensioners have a debt of ~ $ 73,211 and, naturally, they are experiencing very great difficulties with the payment of their debts.
4. Understand your health insurance
If you have always relied on your employer when talking about health insurance, then before you retire you need to decide what to do with health insurance. Will you create private health insurance? What should include this insurance? Consider that the services of a dentist and an ophthalmologist may not include it in the cost.
Think carefully about this issue before leaving your workplace and making plans for a future life. As a pensioner, you, sooner or later, will rely on the health care system. The search for appropriate health insurance, which will suit you in all plans, is an extremely important point. If you do not comply with it, then you can have rather harmful consequences … For example, according to the results of research conducted in 2013 by the American journal “Journal of General Internal Medicine”, it became known that over the past five years a quarter of all American pensioners were ruined, for lack of health insurance.
5. Save on everything you can
If you are close to retirement age and live in a big house, then consider moving to an apartment. Thus, you will get quite a lot of capital, besides, keeping an apartment is much easier. It is impossible not to mention that you can also save money on utilities.
There are many other things you can save on. If you play at online casinos a lot, click here and install a casino app that will allow you to play for free. Still fun but saves you from money losses. If you have a car, then you will be able to save on it. For example, to convert it to gas. Or, to install a dishwasher at home – this thing will be able to save your strength and money.
In the end, you can offer your already grown-up children to move to another apartment.
I can also recommend that you start a diary of expenses – by recording all your daily expenses, it will be much easier for you to understand what you can save on. In the final, you will be surprised at how many ways you can save.
To live in prosperity before and after retirement is not an easy task. You will not do anything if your finances are not in a “good condition”. The best thing you can do for yourself and your loved ones is to start preparing for a pension life in advance, because nobody likes unexpected surprises.