Amazing Retirement Tips to Supplement your Retirement Income

Have you ever thought of the future when you reach your retirement age? Have you planned your retirement, feeling scared of what’s ahead and what might happen after? According to a recent survey, 37% of potential retirees were anxious about what the future held for them. In a 2016 report, most people opt to wait until after the age of 62 before they retire to get a higher pension and social security allowance. If you want to retire early, it is very crucial that you have enough retirement income. Nobody knows when people will die. As such, nobody can tell either how long you will be spending money as a retiree. The longer the time you will live, the greater the money that you’ll need. If you want to enjoy your retirement, you have to be secure with your retirement money, too.

What is Retirement Income?

Retirement income refers to the amount of money you get or earn from your retirement savings, social security funds, savings accounts, pensions, insurance, inheritances, assets, and others. The first thing that you need to know if you’re planning to retire is whether you will have retirement income. Then, you have to find out where it will come from and how much it will give you. Moreover, you have to be aware how much retirement money you will get. Here are some amazing things we can share to supplement your income as you get ready for your retirement.

Retirement Tip # 1: Plan out your retirement

Nothing is more important than planning, and making major life decisions, such as retirement, need planning. Ask yourself questions like “At what age should I stop working?” “How much money should I have in my bank account by then?” “What should I have achieved in my career before I retire?” Planning for your retirement will help you prepare and take the necessary steps that will help you have a secure future.

Retirement Income IdeasTo successfully plan your retirement, you need to have a mentor--probably someone who’s retired, too. Let him or her educate and guide you on your new lifestyle. You will experience changes not only physically or financially, but also psychologically. It’s because you will be breaking away from the routine you have followed for years.

 

 

 

Retirement Tip #2: Get a retirement adviser and seek professional financial advice

In facing major decisions in life, it is good to seek professional help. You may hire a retirement or a financial adviser that will help you plan out your retirement. Your adviser will also counsel you on the steps you can take in handling your finances better. He or she will help you in the process of retiring and will also educate you in preparing for your retirement. You may be asked to update estate documents that you will need for processing your pensions, state allowances, or social security allowances. In processing your retirement, you may have to update your power of attorney, healthcare surrogates, beneficiaries, and others. It is better to do this with an adviser because they will be the one to inform you what the next step would be. Just be sure they are someone you can really trust.

Retirement Tip # 3: Identify your source of retirement income

It is best to explore where you can get your income when you retire. You have to draft and make a list of possible earnings for your retirement. It might be from paid work, state pension, state benefits, savings and investment, salary-related pension, or earnings from your personal properties. All of these add up to your retirement money. Identifying potential retirement money will also help you decide whether you could retire or whether you will have enough money to be able to afford retirement. This step is crucial when preparing for your retirement since you should have enough money to sustain your needs for the rest of your life. That is why you should find ways by which you can fund for your retirement, aside from the pension and allowances you get from your years of service.

One thing that can provide you with funds is the so-called ‘assets’ or the properties that you have, which can generate money. It can be your house, car, or condo unit. If you’re thinking of selling your house or your classic car, or maybe lease a space on your lot, or have your condo unit rented, you can use the income from this when you retire.

In identifying your source of income, it will help for you to determine your income or cash inflow and expenses or cash outflow. First, you have to make a list of your possible assets, how much you will earn from those, as well as the money you can get from your pensions, security social allowances, or insurance. Once you have identified your sources, you can easily identify what your expenses are, too. Of course, you will base your spending only on how much you earn because you cannot spend more than what you make. Drafting your income and expenses will help you budget your money wisely. You will be able to live the rest of your life comfortably.

Retirement Tip #4: Think through your retirement

As mentioned earlier, to be able to determine how much money you need for your retirement, you should first determine its longevity. However, the length depends on how long you will live. According to a study by the Money Advice Service, a 65-year old woman has a 75% chance of living up to 82 years old. A 65-year old man, on the other hand, has a 75% chance of living up to 79 years old. This shows that you may have to live at least 14 more years after retirement. From this, you will already have an idea on how many years your money should last while you’re retired.

Aside from the longevity of life, you also have to consider inflation. Can the money you have today buy the same things after 10-14 years? Since prices are going up, your money should also be increasing for you to keep up with the market. You can choose insurance companies that guarantee you with an increasing income for life. The income should go with the change in inflation every year, allowing you to maintain your cost of living.

Retirement Tip #5: Set up a Cash Emergency Fund

When we age, we have more concerns to live with aside from our health. But in the event that you stumble upon emergencies like sudden medical expenses, home repairs, unplanned out-of-the-country trips, or other unforeseen events concerning your kids, emergency funds will keep you safe. You don’t need to worry that your retirement money will get a little loose because you have funds that you can run to during unexpected situations. Ideally, cash emergency funds should amount to at least three to six months of your income. This is aside from the savings you have from your investment and retirement income.

Retirement Tip # 6: Try Time Deposit

Time deposits are usually for people who want to save their money for the things that matter more like education and business, among others. In a time deposit, you will only be able to withdraw your money from a bank at a given time. For example, if you deposited $100,000 and you want to get it after ten years, you will not be able to get that money earlier no matter what happens to you in the present. This is one effective way for you to save for your retirement because you have your hands off your money. You don’t need to be bothered if you will be able to save a certain amount of money because it’s just there and nobody can get it.

Retirement tip # 7: Health Care Matters for Retirement

Retired people are more prone to sickness or other health issues. Consequently, physical health and wellness should be one of the top priorities when you retire. Your body changes as you age. With that, it is important that you have set up a health care insurance that you can use when you retire. In choosing health care assistance, it is best to get the long term ones. There are insurance companies that provide health care for your retirement, aside from the allowance you get. This usually covers any health-related benefits, including dialysis, laboratory, medication, and hospitalization. This is beneficial because you don’t need to worry about these things when you retire. Since you don’t have a fixed income like when you were still a regular employee, at least you will have health support. It will also be helpful if you can choose a package where health care will be provided for you and your spouse.

Health care is not just the only thing you need to focus on. You also have to invest in activities that will help you emotionally and socially. You might spend some cash on these activities but there are benefits that the state provides for retired professionals. You have to be aware of these benefits so you can fully use and enjoy them.

Retirement Income Tips

 

 

 

Retirement tip # 8: Study the pension options you will get for your retirement money

You have to talk to your employer or the company you work for about the pension plans they have when you retire. Some companies provide pension plans for their “loyal” employees. This means that  it is optional and only given, depending on the length or quality of service you have rendered. If you know you have been working hard and long enough to qualify for this, then better discuss it with your company at least six months prior to your retirement. Things to discuss include payout options, distribution options, and company stock options among others.

Retirement Tip # 9: Let go of your debts before you retire

If you’re planning to retire, make sure that you are debt-free before you decide to leave your profession. Although this is ideal for all retirees, not all can fully pay for their debts before they retire. In fact, research shows that 59% of retirees are in debt. There’s a greater number of retired people that have existing debts than those who don’t. It is difficult to pay for them when you’re already retired because by then, you will no longer have fixed income. Besides, the amount of money that you pay for your debt can be added to your retirement income. So as early as you can, pay off your loans, so that when you retire, they will no longer be a problem.

Retirement Tip # 10: Enjoy your career before retirement; it’s not all about the money

While you are not yet at your retirement age, don’t work too hard for it. Enjoy what you have in the present, build your career, and love what you do. This will help you not to worry of the future too much. Don’t rush things, take your time, and save more. You still have a lot of time to work and build your career. Remember that there’s a right time to retire. Be careful in choosing the right time. When you’re retired, you’re not only having a break from your profession; you are totally leaving it. This also means that you have already made an impact and have imparted something great. 

While you still can, travel and visit places. Go out of town or out of the country. This is something that you can still do when you’re retired, but there’s a difference when you do it with your colleagues or with your loved ones. In addition, you can travel without worrying about your health or finances.

Conclusion

Major life decisions like retirement is never easy. You have a lot to consider and you need help in handling your finances. As such, you need time to prepare, learn, and more importantly, save. It is more than just a yes or no question. It’s about, ‘Am I ready?’ – not only physically, emotionally, or psychologically, but also financially. So be more knowledgeable about your retirement income and know better about where to get your sources. Sign up at www.spacer.com.au to see how you can earn  from your assets and properties.

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