While many of us don’t like to think about our later years when we can no longer work, it’s important to think about the future. Planning for the future is important to everyone, but it can often seem confusing when trying to establish when the right time is to start the planning process. The most important point to remember is that everything must be addressed within the proper time frame.
For example, if you are still completing your studies, you may not be thinking about your eventual retirement. Instead, his top priorities will be somewhere along the lines of his career goals, perhaps the eventual purchase of a home, and other hopes and dreams like getting married and raising a family. These are all important milestones and don’t leave much room for retirement planning when you’re in your 20s and 30s.
In other circumstances, there are people who fail to plan ahead. Time seems to go by too fast, and before they know it, they have a few more years of work to go. There are even those who find themselves retiring unexpectedly due to medical or other reasons. In these cases, it’s good to make sure you’ve made some provisions for your golden years.
Many will agree that the best time to start considering retirement options is in your mid-thirties. This doesn’t mean you need to make any concrete plans, but you may want to get down to business. Take some time to schedule appointments with at least three independent financial advisors to discuss your options. Planning ahead will allow you to anticipate certain financial hurdles (like paying monthly payments), and you’ll be able to make necessary adjustments before you find yourself in a bind.
Once you reach age 40, you should start thinking about where you want to live in retirement. Would you like to remain in your current home, would you like to downsize, or would you like to move to another location entirely?
By the time you hit 50, you should have your affairs well in order. You should be prepared for the type of lifestyle you are likely to expect, and you should also be fully aware of your benefits and when you will be eligible. Consider the long-term future and the fact that your medical and other needs may change over the years and you will need to make financial plans to meet these needs. Remember that even if your pension doesn’t seem to cover all your potential needs, you always have options like loans, credit, and release plans.