Advice for Retiree

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How to Plan a Rich Early-retirement?

Different people take retirement differently and plan their retirement on different stage of life. Planning a retirement needs proper attention and if someone plans out an early retirement, they must not mind putting some extra effort. One might wish to retire at 45 whereas most people mull on this issue after 55 or 60 years of age.

Under today’s economic growth, higher salaries and various investment choices have resulted into too many early retirements. It’s entirely your choice to retire at 40 or 60 years of age but retirement at both the stages are different to each other and have their pros and cons.

Image Courtesy: goo.gl/pS9Ex

Image Courtesy: goo.gl/pS9Ex

At the age of 40, you might have several commitments to fulfil and moreover, you have lesser time for accumulating retirement savings. On the other hand, it will give you a chosen lifestyle.

Retirement at 60, in most cases, is obligatory under the policies laid out by most companies.

Here are few basics for early retirement and how you can make your retirement rich in financial terms.

Consider a retirement age: This is the first and foremost step in planning an early retirement, as you will get a fair idea on savings pattern.

Life expectancy: Estimate how many years you are going to live post retirement, though it may sound difficult but by doing so, you can have an idea on the size of corpus.

What retirement meant for you: Two different persons will want to enjoy their retirement in different ways. If one plans early retirement to pursue other dreams, other may choose it for the world tour. As living two entirely different dreams varies on expenditure, you will need to mull on retirement plans that are poles apart to each other.

Now you will have a complete idea on how much savings you are going to need in your retirement. Here are a few steps that will help you in retirement savings.

Start early: If you are planning an early retirement, no way you can afford to start savings latter. Make sure to start your action as soon as income starts flowing in. Ensure that your contributions are without any gap, as this may prove burdensome to re-start after a gap.

Start small: There is no need to invest once in a big chunk, you must start savings early, even if it means small contributions. Your small contributions will one day return into big pension pot.

Increase the size of investment: Starting small does not mean you should get stick with it forever. Your savings must be proportionate with the income; it means that when your income is up, contribution, too, should be higher. Make a goal and work accordingly.

Wise investments: While making investments, you must look to balance the risk and return factors. In the early years of working life, invest in equity and later modify it for balancing debt instruments.

Buy a house: A house gives stability to your life. Make sure to buy a house, does not matter whether it is small or big. It will also help you in the later years to withdraw equity in the form of equity release scheme from the house.

Image Courtesy: goo.gl/LyA6r

Image Courtesy: goo.gl/LyA6r

An early retirement can offer a chosen lifestyle and help in pursuing your dreams, but to have a successful early retirement, you must chalk out plans and stick to it for the entire working life.

Equity Release Scheme to Support You through Thick and Thins

image courtesy: http://goo.gl/JFr0S

image courtesy: http://goo.gl/JFr0S

According to a report, baby boomers cover a giant portion of population in UK; almost 78 millions of them form the community. Eldest among them came in 1960s and are on the verge of retirement.

Their growth was in the era, when standard of living was on the rise, but reason Great Recession to whirlwind their financial security and destroyed many nest eggs. In the present times, they face several issues in leading a comfortable lifestyle.

The baby boomer generation is between the 48 to 67 age group. Some of them are already retired or about to retire, whereas some are getting their kids through colleges.

This is an age, where a little lacking on the financial front can backfire in the retirement years. The volatile economic situation is worse of many years and retirement gains are on the constant downfall.

However, as it is said that something is better than nothing, so even the little sum of pension amount can be useful for the retired mass. State entitled social security can be another beneficial source of income for them. And, if you have some sort of retirement savings, life can be easy to you.

Confusion regarding the retirement savings and government plans are doing no good

image courtesy: http://goo.gl/p8m2X

image courtesy: http://goo.gl/p8m2X

But, here, ‘one size fits all’ approach can be suicidal and in many cases, retired people get confused, as     what should be the standard amount of savings to maintain the set benchmark.

Government in UK tend to modify the age limits to receive pension benefits. Recently, they have come up with bizarre approach in deciding who all will be receiving the pension benefits over certain period. Certainly, these policies are not doing any good to the retired persons.

Living a well-to-do life is becoming tougher by each day, if you have not signed in to the retirement plans in hey days, in all the possibility, you are deemed to receive the benefits provided by some of the means and time tested benefits.
Sign in to equity release for a better-off lifestyle in retirement years

image courtesy: http://goo.gl/1DdFT

image courtesy: http://goo.gl/1DdFT

Why not sign in to equity release plans, as these are solely designed to meet the requirements of senior citizens. Over the years, equity release plans have been benefitting senior citizens to come out from the financial intricacies.

Of late, some strict rules and regulations have been enforced by the equity release council to protect the interests of senior citizens. Interest rates on various schemes are lowered and flexible products have been launched to safeguard the benefits of needy persons.

Equity release offer much needed support at old age, when everyone has turned their faces against you, this plan could enthuse the spirit into you to live a highly esteemed lifestyle.

Five Retirement Phases and How to Make Them Fruitful

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image courtesy: http://goo.gl/zRWI1

Over the last decades, a significant change in work culture has been noticed and same can be said true for the retirement. In the present times, people tend to change their workplace constantly and do not stick to the same employer for the lifetime. It has affected the benefits to be gained in the retirement age.

Today, you are expected to live the retirement age on own money, the money you saved during the working phase of your life suffice your retirement needs.

In the present scenarios, it’s of utmost importance that you carry out the retirement plan with keeping your priority in the mind. Take a look at the below mentioned phases and what aspects you should put more weight on.

image courtesy: http://goo.gl/wr7g7

image courtesy: http://goo.gl/wr7g7

Accumulation

This phase begins as early as you enter the workforce and start setting aside money for later years of life. The end of this phase comes when you retire to live a family-man life. During this phase, you need to check on whether your employer offers different retirement plans and have you signed up for that? If you are self employed, you need to short-change on social security to avail tax deduction benefits.

Pre-Retirement

The pre-retirement phase begins when you are in the final years of accumulation phase. If you are 50 years older or 15 years away from the retirement, now is the time to start getting retirement plans in place. Do not take a chance in lining up your finances for the retirement age. You must seek advices from the experts to convert you employer retirement savings into IRA or other source of income. Get abreast with social security and basics of Medicare.

Early-Retirement

image courtesy: http://goo.gl/zD4dA

image courtesy: http://goo.gl/zD4dA

Early-retirement phase starts from the day you retire and ends when you reach 70 years mark. As soon as you enter this phase, create a proper communication channel with your family and share the entire information. All the decisions should be made in calm and supportive manner. In this phase, you also need to assess your financial status and how it is working. Consider using tax-deferred accounts to meet your requirements. At this age, if you find yourself in financial catastrophe, retirement equity release schemes can be a fruitful choice to make.

Mid-Retirement

At the age of 70, life is all about giving up and transferring controls to someone, who can take care of you. Though you might be healthy and raring to go but at the same time, you would like to communicate the measures your family should take, if your health conditions deteriorate.

Late-Retirement

There comes a time, when your health takes a turn for the worse. You require supports to live your day to day life. You hope that all the previous planning bear its fruits in the retirement age and manage the transition of your life.

 

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