7 Tips To Comfortable Retirement

A worried elderly manHaving a comfortable retirement should be and is actually on top of a lot of consumer’s financial wish list. They dream of kicking back and watching the sunset as they sip their nightcap not worried about the alarm clock getting off early the next morning. They do not have to worry about getting in the car and taking the morning rush head on just to get to the office for another nine to ten hours of work for the day.

As this continuously loops inside your thoughts, you need to remember that it doesn’t have to remain a dream. Yes it is hard work but it is something that you can achieve. One thing you need to ask yourself at this point if you are already thinking about comfortable retirement is how confident are you with your retirement plans?

Statisticbrain.com shares that in the US, the average retirement age is at 62 years old. This can give you an estimate of how far off you are in retiring. The younger generation, especially those that are coming fresh off college might not be thinking about retirement just yet. They are too consumed with the repayment of their student loans.

But a comfortable retirement does not come easy and is a lot of hard work. This is something consumers needs to understand especially the younger generation. As they try their very best to have a sensible household budget and repay their student loans, they need to know that the earlier they start, the more hardworking the compound interest in the funds will be.

The older generation, those that are a few years shy of retirement age also needs to have a solid retirement plan. At that point in their lives, they are already at the homestretch of their preparations and must be knowledgeable enough of how to make their retirement money work for them. This is also the stage where they are already ramping up their contributions and carefully selecting investments to minimize their exposure to risk.

Getting a comfortable retirement

Regardless of what stage you are in for your retirement preparations, there are a few things you might want t look into to help you prepare for your golden years. Here are  few things worth remembering as you pursue a comfortable retirement.

    • At what age do you want to retire? It was mentioned above that the average age for retirement is 62 years old but it really depends on the person. There are some that still feels strong after 62 and does not want to retire. Then there are people that cannot even reach the age of 62 and already wants to retire. In order to have a solid retirement plan, you need to pick a date that you see yourself retiring by taking into consideration a few things. You need to take a look at your health, the income that you have and your lifestyle and career. Your family will also play an integral part in choosing your retirement year.
    • Talking to your spouse. There are some people that are more inspired to save for retirement because of marriage. With this, you need to take into consideration the retirement plans of your spouse. Both of your retirement goals must be in-sync to have a lasting and more meaningful married life after you hang your suit and tie.
    • Where are you with Medicare? It is no secret that when you reach old age and in retirement, your health will start to deteriorate regardless how often you workout or how frequently you take multivitamins. These can only go so far and as your body will start to get weak, you need to be assured that you are medically covered with any medical needs. Take a look if you qualify for Medicare or if you would have to take other providers into consideration.
    • Where is your comfortable retirement location? This is a valid question because there are a lot of retirees opting to transfer to another place where they can make the most out of their money and still live a full life. The number one consideration is the cost of living followed by health facilities, low crime rates, and even recreation opportunities. Investopedia.com shares that if you are in the mood to relocate to another country, the Philippines is one of the top retirement destinations. If you want to stay in the US, Bankrate.com shares that South Dakota is an ideal place if you can see beyond the cold temperature.
    • What will be your retirement activity? The picture of rest and relaxation is different for a lot of people. There are those that choose to bake in the kitchen, some would prefer reading in the study, others would put their time in home improvement some will try to live a frugal retirement while others prefers to stay at home watch tv. It is important that you have an idea what you want to do when you hit retirement. Do you still want to work part-time as a consultant or turn your hobby into an income-generating venture? Whatever it is, you need to have a solid plan on what to do with retirement.
    • What is your target comfortable retirement fund? With all your plans in place and a retirement date counting down on you, you need to be able to figure out how much you need to have in you fund. You cannot just try and wing it because if you fall short of your needs, it is not exactly easy to just jump back into work. This needs careful planning and understanding your expected retirement cost.
    • Pay off your debts.  This is one tip that you will read and hear over and over again. Before reaching comfortable retirement, it is ideal that you have already paid off all your debts. This can include the student loans that you took out while pursuing higher education. It can also be your car loan and some credit card debt. More importantly,you need to have paid off your mortgage. Carrying debt into retirement will dilute the strength of the funds that you have already built up. More than losing that amount to payment, you are being hit by interest payment that you could use to buy medicines of pay for utilities. You can look at consolidating your debts to streamline the payments and be able to focus on paying them down. Here is video on why it is better to have your mortgage paid off before you retire.

Retiring when you want

One of the most important things when deciding about your retirement is understanding your needs and even wants. No one can tell you when to retire but yourself and planning for a comfortable retirement is within your capabilities. It is not a walk in the park but not totally impossible. In fact, there are a lot of retirees who were able to do it and now living a good life.

In fact for some people, targeting for a comfortable retirement is just the minimum. They want to have a blast during their golden years and spend time doing what they missed out when they were still slaving it out in the corporate world. They prefer to travel, wine and dine and see the world. No matter what your plans are, comfortable retirement is possible if you put in the hard work and keep focused on the goal.