Retirement planning: Few things soon-to-be retirees must ensure
Retirement marks an important milestone in one's life, and it is important to ensure that you are prepared for this new chapter. Because, let's face it, your joints won't be as flexible and your wallet won't be as full. So, it is important to check off these must-do tasks from your list so that you can have a hassle-free post-retirement life.
Cut down on your debt
Accelerate your mortgage payments and clear any debts you have before you retire. Opt for cash payments when making major purchases to prevent accumulating new credit card debt. By minimizing both new and existing debt, you can substantially reduce the amount of retirement income that goes toward interest payments. Adopting these strategies can help provide a comfortable retirement without financial stress.
Have an emergency fund ready
Even if you have planned your finances well, unexpected circumstances can still arise and disrupt your financial stability. It is always better to be prepared for such situations. One effective way to handle emergencies is by building up an emergency fund. To ensure you have enough cushion, aim to save at least six months' worth of living expenses in this fund.
Take a break and travel while you can
Enough of sacrificing your days for your career. Take a break now and go on that long-awaited vacation. Think of it this way - as you age, your body will become more complacent and won't support you enough to travel. So, don't wait any longer, plan your dream trip, pack your bags, and explore the world while you still can.
Prepare and repair your home
Ensure that your home is in good condition. Take the time to inspect your home for any necessary repairs, and get them rectified while you are still earning. You don't want to spend your retirement years dealing with constant repairs. Do you? You can also consider setting up a sinking fund to cover any unforeseen repair expenses that may arise in the future.
Make those necessary purchases now
If you are planning to buy a new car or furniture, or want to replace your old home appliances or smartphones, it is best to do so now while your pocket still allows it. Once you retire, you will have a fixed income, which may not be sufficient to cover those big expenses. This may help you save money in the long run.
