It is believed that retirement is full of fun and frolic but oftentimes this notion gets marred in the absence of enough amounts of cash. According to some recent studies, retirement savings are constantly on the decrease, more than half of the population do not have enough savings in the account to live a sumptuous and healthy retirement lifestyle. The same study reveals that major portion of retirement savings are likely to get finished into the early phase of retirement.
Now, you are in 40s and do not have abundance of money in your retirement account. There are not many working years left either, so that you can start savings with a fresh mind and new approach. Most probably, the small corpus of savings would be haunting you but you need to be calm and composed as they say, it’s never too late to mend the ways.
So, what are the options available with you?
Become abreast with all avenues of savings and come up with aggressive investment
Still there are many ways open to you, explore them. First of all, categorise your income and expenses and find out if you can reduce the expenses. Once it has been categorised, start investing aggressively and ensure that your investment is productive.
Trust on equity
At this stage, your properties can give much-needed respite to you. Equity release scheme has been topping the list of beneficial retirement plans. The money received after release of equity on home is tax-free and you have the freedom to invest the way you like to. In the recent times, interest rates have been lowered on most of the equity release schemes, so you can look for a cheap deal.
Minimise your consumption needs
It’s wise to think austerity, when you do not enjoy the freedom of cash. If you are planning to buy expensive items such as car or new homes, shun the idea and prefer to buy only essential goods.
Cover your life with health insurance
At this stage of your life, you need to cover yourself with health insurances. Get to know about government sponsored benefits and make full use of it.
Focus on creating savings
When you are in 40s, retirement plans may not benefit you much more. Pay heed on accumulation of wealth and create savings whenever and wherever you get a chance to.
If you are still young enough to contribute into retirement funds, must check in with your employer to know of various retirement schemes that they offer you.