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Finally retiring after spending decades in the workforce should be something of an adventure. It’s your time to say goodbye to the daily grind and start doing everything you’ve ever wanted to do. However, if you haven’t planned for a financially secure retirement, it can be anything but an adventure. If you don’t want sleepless nights and uncertainty, it’s time to make a game plan – and here’s how:
Use Your Home’s Equity
Applying for an equity release can relieve the financial burdens you’ve been carrying in the years before and after retirement. Using the value of your home, you can cash out your hard-earned money to supplement your income, pay for renovations, or cover medical care in the short or long term.
This safe, smart, and secure method can offer peace of mind and help you to remain financially stable in your retirement.
Pay Off All Debts
With the average age for retirement sitting at 62 years old, it’s crucial to begin getting all your ducks in a row sooner rather than later. To do so requires you to get smart with your debts. Avoid racking up credit card debt, pay off your in-store loans, and get those final payments made on your mortgage as soon as possible. To enjoy your retirement years in the best way possible, being financially responsible is paramount.
Stay in the Workforce
If you’re unsure whether social security coupled with the savings you have will be enough to support you in retirement, then consider staying in the workforce longer. As long as you’re fit and healthy to keep working, there’s no reason why you need to hang up your slacks as soon as you hit the average age for retirement.
In fact, working into retirement years is not uncommon, with the unemployment rate of over 55s ranking lower than the entire US population. Some people do it out of boredom, while others worry they will not have enough to live on without full-time or part-time employment.
Plan and Budget
While it doesn’t sound like a whole lot of fun to start planning for your retirement in your 20s, it can spare you from the stress of financial insecurity down the line. As soon as you join the workforce, always be thinking about when the day comes for you to leave it. Become involved in saver schemes such as 401(k), set up savings accounts you can’t touch and make sensible financial decisions that will serve you well in the long-term.
Planning now can put you less at risk of being one of the 67 percent of Americans who may outlive their savings.
Delay Social Security
Social security is a benefit for pensioners, the unemployed, and the disabled. While it helps a significant number of people to put food on the table, it may not be enough for some to survive on comfortably. Therefore, along with extending your stay in the workforce, you may also like to extend how long it is before you receive social security. The longer you wait to receive it up to the age of 70, the more you earn. In fact, you may even see increases of up to eight percent in your monthly benefit by merely choosing to wait a few more years.
Even though you may be a few decades away from retirement, there’s no harm in planning for your financially secure future today. The earlier you begin to prepare for it, the more confidence you can have in knowing your retirement years will be comfortable and even a little bit luxurious!