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Budgeting for Your Retirement

Posted July 31, 2017 by Sporty Dave to Retirement 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

After a lifetime of hard work and dedication, it’s finally the time to retire. You always wished to spend a peaceful life after you’re done with the hassles of a 9-5.

However, it is not meant to be because your savings account doesn’t have the amount to fund a comfortable life after retirement.

This problem is faced by many people all over the world, just because they didn’t plan for their future. Just so you don’t have to face the dire consequences of this situation, it’s better to start saving today. The easiest way to go about it is to budget for your retirement.

Budgeting for retirement is essential since it is going to be your lifeline in the later part of your life. You need to know you have money to survive and enjoy life to the fullest.

So, to pave your path to a secure life after retirement, here are a few tips on budgeting for retirement.

Assess your finances and make sure you go through each aspect of the budget. Retirees are advised to have at least 70-80% of their pre-retirement income to live on.

If you have this amount, well and good, but then it all depends on how lavishly you’d live. Consult a financial advisor and get all the help you can get.

Review your income sources and carefully assess all your income streams. The more reliable your sources of revenue are, the more secure your future will be.

Reflect on your spending and try to cut down on unnecessary expenses. After retirement, you might want to watch where you spend your money. Re-evaluate your decision and instead spend on something that’ll be a source of entertainment for you.

Don’t wait until you retire to start thinking about your future accommodation needs. For people living in Lake Macquarie or the Central Coast, a retirement village is a very popular option. If a retirement village is your best option, you need to start looking at your options both in terms of sale and purchase.

That expensive centerpiece might not last long but a day out with the family or friends would surely be memorable. Don’t waste money on things you don’t need.

Pay off your debts before you retire. Carrying this burden into your retirement will most likely cause problems. Cut back a little on your savings but pay off those debts first.

Let your kids know that you might not be there to cushion them if they fall, after your retirement. After all, you have to look after your expenses too.

Be frank with them and set clear expectations about how much help you can provide them with.

Even when you have planned well for your retirement, your lifestyle changes and your nest egg might not be able to keep up with the expenses of your new life.

So plan and decide what your plans for post-retirement are. Take out time to rework your budget in the year you are to retire so that it suits your new lifestyle.

Image: Pixabay CC0 License

About Sporty Dave: David is an Australian blogger with an interest in finance and family and writes for business.com and Self Growth.

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