We are facing a problem regarding retirement. Social security, medical insurance, and savings in the bank … The vast majority of us are not saving enough. It is quite possible that we lack the necessary knowledge to retire properly.
These are the 10 commandments we recommend for an ideal retirement:
- If your pre-retirement lifestyle is a style you can sustain when you stop working, then you’re on the right track. Otherwise, you’ll feel a major change.
- Remember that Social Security represents the % of your pre-retirement income. Once you retire, you’ll want the most sources of income, and Social Security can be one of the steadiest. However, don’t forget that it will be one of the lowest incomes.
- Create a financial and asset plan for your partner and all those who depend on you financially. Annual income, investment income and life insurance are some of the elements to be included in the plan.
- Do not leave aside those aspects that are not linked to the finances. If you think about moving, plan ahead. In addition, take into account that moments of leisure are also expensive.
- Pay attention to any communication issued by the Insurance, Health Insurance or your employer. What you do not know can hurt you. It is important to comply with dates and deadlines.
- Put retirement savings ahead of other goals, such as travel or a holiday. You have only one chance to plan it right.
- Save as much as you can, as soon as you can. Let the money work for you from the beginning of your career. Although over time you save less due to expenses such as education, housing, etc., saving from the beginning will prepare you for those days.
- Take into account tax payments and the fact that taxes are likely to increase over time.
- Health insurance is extremely important. Always take it into account as a fixed expense. Even though the premiums are high, it is a service that we cannot neglect.
- Invest so you can have several different income streams. In the end, retiring is not so different than working; you still need a continuous income. Get advice from an expert to manage your investments.