Retirement is an important milestone many of us work towards. A period to relax and enjoy personal pursuits outside of professional responsibilities. It represents a key transition in both lifestyle and financial aspects. Being financially fit for retirement is crucial, as it greatly influences your living standards. It's essential to plan where your income will come from once you retire. Here are some vital steps to ensure you're financially fit for retirement.
1. Start Early
It's essential to begin early with your retirement planning (but remember, it's also never too late to start!). The power of compounding can provide immense benefits over time. Even small, consistent contributions to your retirement fund can grow substantially. Additionally, pension contributions offer considerable tax advantages. Access to some pensions can start as early as at age 50. Therefore getting advice on your options is crucial. Contact us at Financial Equality Services to discuss your own personal circumstances.
2. Set Goals
Having clear goals and a structured plan improves your chances of success. What are your retirement objectives? How do you see your lifestyle after retiring? A clear vision will help you determine how much money you'll need for a comfortable retirement, enabling you to budget effectively for your pension savings. With the state pension age projected to rise from 66 to 68 or even higher, we can help you set a realistic retirement age goal, just consult one of our experienced advisors to discuss in detail.
3. Clear Debts
Entering retirement with debt can create an unnecessary financial burden. Recent studies show that around 25% of people are still paying their mortgage upon retirement. This presents a significant regular outgoing. Prioritize paying off high-interest debts like mortgages and credit cards to reduce these ongoing monthly payments. It can be challenging to prioritize debt payments effectively. That's where we can assist you with your financial management.
4. Diversify Investments and Know Your Charges
Starting your pension is just the beginning. Keeping it on track is equally important. Diversification is key to managing risk. It can boost returns while minimizing possible losses. At Financial Equality Services, we believe in delivering jargon-free advice. This includes regular pension reviews and full transparency of charges. Effective ongoing management of your pension could save you thousands at retirement age.
5. Plan for Longevity
With advancements in healthcare, people are living longer, often into their 80s and 90s. That's why retirement is often called the “Third Age,” filled with possibilities. Even retiring at 68 could mean over 20 years of post-retirement life. Therefore, your financial planning should account for the likelihood that your savings will need to support you for several decades. We can help ensure your post-retirement income meets your needs using our expertise and advanced planning tools.
6. Get Advice
Planning for retirement can be overwhelming, but there is plenty of support available. The Retirement Planning Council of Ireland is an excellent resource. At Financial Equality Services, we're here to help you too. Once you're ready to consider your retirement options, we can explain the necessary steps for a secure future.
We'll support you from the beginning through to your retirement and beyond to help you achieve your goals. If you’d like straightforward, jargon-free and fully inclusive advice on your pension or any other aspect of your financial planning just get in touch with us at Financial Equality Services to arrange a free consultation.
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