Financial planning never stops being important. From the day we put our first coins in our piggy banks, saving for comics and sweets, we’ve been financially planning our lives. Of course, when people talk about financial planning we often think about staying out of debt, paying debt off, and making rent or mortgage payments. From paycheck to paycheck, there’s always something to budget for and even if you’re in the black there are so many hidden expenses lurking, like children or medical bills. What we think about less often though is what we are going to do when we finally collect our last paycheck and retire. When did you last think about financial planning for retirement? Retirement may seem like a long way away but it can really sneak up on you and you’ll want to be prepared when it does so you can enjoy your free time to the max. After all, you won’t get a second go at it!
The average person can expect to live for thirty years in retirement, that’s a long time. If you think about the money you have in the bank right now, how long could you make it for without another paycheck? Yeah, we don’t like that thought either!
There are many people who believe that the state contributions they make from their paychecks will be enough to sustain them once retired, but this is sadly a common misconception and may turn out to be inaccurate long after your ability to change your situation. Our first and most important tip for financial planning for retirement will always be to start, and start early. In fact, the earlier you start the better. We’ll say it again, start early! Your pension savings are very long-term investments, which means they attract much higher interest rates than your regular savings account and so logically if you can save earlier you’ll reap a greater reward.
Saving for your future can be confusing and if you’re contributing to your pension individually, there’s a range of options that you can consider when choosing where to invest your funds. You may prefer to seek advice from a professional who specializes in pension investments and can explain the pros and cons of all the options available to you.
When you meet with a professional, you can discuss your financial future and your current state to evaluate what’s manageable in your current circumstances and where you’d like to be in the future. They can build on this information to develop a plan which will tick all your boxes and set you up for the future. Financial planning for retirementdoesn’t need to be rocket science; a good advisor will invest your funds effectively, monitoring their performance and reinvesting where necessary to ensure that your money is always working just as hard as you are.
We’ll leave you here with a top investment tip from the professionals specializing in pension planning, invest sooner rather than later! Ok, we know we said that earlier, but we just can’t stress the importance of getting your financial future looking ship shape as soon as possible so you stand the best chance of enjoying those cruise ships with financial freedom.