Most of us are familiar with the concept of savings to manage finances better for bigger purchases like buying a new car or going for a dream vacation. But, how many of us literally think of saving for the life after retirement? Just as you save money for bigger spends now, you also need to keep some pennies aside to have a life full of fun and excitement post retirement. If the responsibility is not strategically planned and not taken seriously beforehand, life post retirement might turn into a dramatic nightmare.
So, to make sure you are prepared for all the changes and ready to take up all the responsibilities effortlessly, here is a retirement plan checklist you need to consider to keep your life as easily going as it is today.
• Set your retirement budget – Set your retirement budget to begin with the checklist. You have to know how much money you need to have in your pockets for a healthy living. Make sure you consider the market inflation factor to be calculated on average of about 3 to 5% per year.
• Estimate your healthcare costs – As you get old, several health concerns are also grounded. Therefore, health care is an important factor to consider while preparing to get a retirement plan. Keeping an estimation of health care costs makes you financially prepared to face any medical emergency post retirement.
• Determine your expected retirement income – It is significant to know your current financial status and determine the expected monthly retirement income. Also know if there is any government’s retirement scheme and add the income from that asset as well. You can also tally up income from a part-time job while in retirement if this is likelihood.
• Know your retirement age – Someone who is just 10 years away from retirement need to be well prepared financially and eager to exit the workforce. With life expectations and responsibilities continuing to grow, individuals might have overlooked the need of getting a retirement plan. But, worry not as it’s not too late. Determine your retirement age and get the plan accordingly.
• Shop for the retirement plans – As of now, you have penned down certain factors, it’s time to shop for best retirement plan according to your set of preferences and needs. The market is flooded with several retirement plans that you can choose from. Each plan has different premiums, maturity sum, and additional features.
So, just get a retirement term plan and enjoy a pro-longed holiday with your loved ones without any financial worry.