How much do you know about retirement? Or better yet, What is retirement? Is it the time when you reach a certain age that you can stop working and receive your monthly pension? Yes, it definitely is. So in this article, I would like us to look at the urgency for retirement planning in your 30s and beyond.

Just to let you know that retirement is more to it than stop working at a certain age.  Apart from its definition as the status of an employee who stopped working, there are still plenty of things you need to know about retirement, like at what age can you retire, is it possible to work after you’ve retired, reasons for retiring and more.

retirement planning in your 30s

Some Reasons for Retirement

A survey which was done a few years ago showed that the most common reason for retiring was illness and disability. So it goes to show that there are persons who have to take early retirement because of various reasons.

Some people retire early because they want to, others do because they can afford to retire and a few found their work too stressful. For all we know, there could be hundreds of reasons why people choose to retire earlier. Some people are faced with involuntary redundancy or closure, while others wanting to care for a family member or to spend more time with their family.   So I hope you are seeing the urgency for retirement planning in your 30s or even earlier.

If you are in your 30s and have not yet started a serious retirement plan you might be in for a rough retirement.  Don’t get caught in the trap with thousands of other people worldwide who believe that they are still young and have a lot of time ahead of them to plan.

Retirement

Many workers, especially those who are nearing their retirement age, look forward to their retirement as the time to enjoy themselves. Most often, they discuss and plan their golden days as a major event, wherein they don’t have to worry about work pressure and keeping schedules and appointments. This will have a lot of time to do the things they’ve always wanted but never had the time. Most likely, continuing work could be the last thing on their minds, unless of course, they need extra income.

Actually, anyone can semi-retire and still keep some sort of sort of job. Although this option is usually made out of choice rather than necessity. This frequently happens upon reaching a determined age when physical conditions won’t allow you to work anymore, probably from illness or accident. Or, maybe for personal choice, which usually in the presence of an adequate pension or personal savings

The ideal age for workers to retire differs from country to country, but most commonly, the ideal age is between 55 and 70. However, there are certain jobs that are very dangerous or strenuous, which have an earlier retirement age. Early retirement can be at any age, but it is generally the age needed for eligibility for support and funds from the government or employer-provided sources. In other words, early retirees have to depend on their own savings and investments to be initially self-supporting until they start receiving such external support.

When the time comes that you will face your retirement days, make it a point to treat yourself with the things you wanted to do, but wasn’t able to because of the times that your job took from you. you owe them to yourselves and to your loved ones. There couldn’t be more perfect than spending your retirement happily, peacefully, and enjoyable.

Financial Retirement Planning in Your 30s

Many people retire after they find themselves financially stable enough to support all their needs. There are also some who consider first how much they have already saved for them to say that they are already ready for retirement. Well, money matters really play a vital role in retirement and to become financially secure after retirement takes time, effort and of course, proper planning.

The concept of financial retirement planning is not something that is fresh or new to the people’s ears. It has been around for more than a decade now, and many successful retirees have considered financial retirement planning at some point in their lives. Now, if you are thinking about retiring from work, but you want to make sure that you will be financially stable when the right time to retire comes, knowing everything that is involved in the planning is definitely one of the best moves you can make.

So to start with your financial retirement planning, simply note that you are dealing not just with money here, but for a better future. Note that and if possible, save as much as you can as early as possible. As what many retirement experts have said, the sooner you start saving, the more time your money has to grow.

Set Retirement Goals

Set certain goals that are realistic and make those goals an important part of your financial retirement planning. You can project your possible expenses based on your needs. Consider how much your life after retirement will cost and try calculating everything that is involved. Settle only when you find out that everything is tackled and solved.

If you are in the United States you can also consider a 401K plan as a special part of your financial retirement planning. The 401K is after all one of the best and easiest ways for saving after retirement. But before you consider the plan, make sure that you have understood everything that is involved in it, how it works and how you will benefit from it. There are also the IRA retirement plans for you to take. But as mentioned, know first what the plans entail and how they work to support everything you’ll need after retirement.

As you go along the financial retirement planning process, try to look at your asset allocation. It has been maintained that how you divide your portfolio between stocks and bonds will have a big impact on your long term returns. And, speaking of long term returns, several retirement experts have noted how important the decision of paying attention to the stocks and bonds is. According to them, stocks offer the best opportunity for you to achieve high returns over long periods of time, while bonds should not be considered heavily even in retirement for that will increase the inflation level, thus destroying the purchasing powers of the interest payments of your bonds.

Retirement Income Planning

retirement planning in your 30s and beyond

The simple truth about retirement income planning is that it is important. Important in the sense that we have to identify and project everything about expenses and save as much as we can if we wanted to live the kind of life we always dreamed of our retirement. You may have a perfect life today and decided to worry about retirement when it is around the corner. If this is what you are doing, you could be in trouble! No one can say retirement income planning is easy. In fact, it is very difficult and requires careful considerations of many things, such as unforeseen expenses, health, and more.

But before you start to worry, let me explain what I meant. What I’m trying to say is that; if, at the present, you have worked so hard to live comfortably and with a sense of contentment, did you not think that you are supposed to live like that, or more than that, when you retire? I would say, most definitely! When you reach the point in your life, wherein you are no longer physically able to do the things you used to, wouldn’t it be right to just enjoy everything that you have worked for and saved your retirement? Yes, it would and this is exactly the idea why retirement income planning is very crucial.

To be able for you to effectively succeed in doing your retirement income planning, you have to take several steps, such as:

Project Your Retirement Expenses

retirement planning in your 30s and beyond

It maybe is hard to identify and project your retirement expenses, especially if retirement is still far off, but still, it is essential to take this step to establish your retirement income planning properly. But, always remember that the cost of living will eventually go up.

The common expenses that you must consider include the following:

 Food and clothing
 Housing
 Bills
 Transportation
 Insurance
 Debts
 Taxes
 Education
 Recreation, and many more

Retirement Planning in your Early Years – Decide When You Will Retire

To determine your total retirement needs, don’t you only have to estimate how much annual income you will need, but also you have to consider how long you will be retired. In other words, the longer your retirement, the more years of income you need to fund it. If you want to retire earlier, say 50, to get the most out of your retirement. You might as well need booming stock market or a generous early retirement package.

Estimate your life expectancy

Your lifespan is one thing to consider in determining how long you’ll be retired. Again, the longer you live, the greater the funding is.

Identify your sources of retirement income

The next step to take after you have determined your retirement needs is to assess how prepared you are to meet those needs. Your employer may offer a traditional pension that pays off your monthly benefits and, of course, you can also count n Social Security to provide a part of your retirement income.

Make up any income shortfall

After making your retirement income planning and the result proved that your expected income sources will be more than enough, count yourself lucky. If it comes up short, don’t panic for you are not the only one with this kind of dilemma. This is probably the time wherein you will the assistance of financial professionals –retirement planners. They are the ones expert in helping you out with your retirement income planning to let you enjoy your retirement golden years without financial fears.

Conclusion

Finally, when considering a financial retirement planning, it is best to consider yourself working part-time even after retirement. What you will earn on your part-time job will help increase what you’ve saved for your retirement. It will even keep you socially engaged.

Categories: finance

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