Are you planning for your retirement? Thinking about how much you need to save up to have a comfortable and cozy lifestyle when you reach the golden years?
If you look at the average lifespan in Africa, not too many people will reach their 80’s. Having a retirement goal for your late 50’s and 60’s may not be the worst idea. This is even truer if you want to live a cozy life or a sustainable one when you do decide to retire
Right now, you’re likely thinking, “is it hard to plan for retirement? What do I need to do?” and some are likely to get stressed over it. However, with our help, we’ll show you a path that can help lead you to a successful retirement plan.
Estimate Your Retirement’s Lifespan
Right now, you might be telling yourself that you’re too old or too young to plan your retirement. In reality, it’s never too late or too early to plan for retirement.
First and foremost, you’ll want to know how long you’ll want to enjoy your retirement. The first thing people take into account is their family’s average life expectancy.
Did your great-grandparents have long lives? What about your grandparents or your parents? Does your family have a history with illnesses?
Once you have those in mind, you’re going to want to decide on what age you’ll want to start your retirement. Put that and the age of your family’s expected lifespan into the equation, and you now have a set length to enjoy your retirement.
Making a Retirement Goal
Now that your retirement is all planned, what you want to do next is to start saving money. The general rule of thumb is that you’ll need 80% of your current income, at a minimum, to have a sustainable living situation.
Take 80% of your income and multiply it by the calculated duration of your retirement. This will give you a basic financial target.
An easier way to calculate for this when you want to include your spouse in the equation is to use a retirement calculator, easily available online.
Prepare for the Worst
That said, it’s not out of the question that things may not go as planned. Sickness might take away from the savings, disasters might strike, and/or inflation might take a significant chunk of your nest fund.
Prepare for this in advance by setting aside some funds dedicated to emergency spendings.
Plan Your Budget
You now have an estimated budget. It’s time for you to decide how to achieve that budget and still live comfortably.
Have a portion dedicated to necessities such as food, housing, and electricity. Have the remaining spread out to accommodate what you’ve always wanted to do once you’ve settled down.
Doing this will help prevent you from going bankrupt when you no longer have income coming in.
Invest Your Money
A lot of people are afraid to invest money, which is understandable, the fear comes from unfamiliarity with how investing works and what to invest in.
Investing, however, is the best and fastest way that you can make sure you can reach your goal before retirement.
Overcoming the fear of investing is simple, all you have to do is to research on what’s worthwhile to invest in. Preparation and knowledge can help you with investments a lot.
Although they can incur debt if you don’t pay it back, loans can act as a boost for you when you want extra capital when you want to start investing in things you’re interested in. If you’re successful, you can pay it back without problems.
Apply for loans when you have some security with your money and your management, and you will balance out the negatives of getting one.
Plan Your Retirement and Reach Your Goal
There you have it, ways to plan for your retirement and help reach your retirement goal. Do these and you’ll have no problem reaching your end goals.
If you have more questions about loans and if you can qualify for one so you can reach your goal, please don’t hesitate to contact us today.