Whether you’re just entering the workforce or been there for a while, the fact still remains that retirement isn’t too far for you to worry about. Everyone wants to have a retirement that is filled with bliss with no worries whatsoever. But, making the wrong financial move could impact greatly on your retirement and we are here to help you avoid that. Here are some of the mistakes you should avoid.
No plan: Simply put, you can’t reach your retirement goal if you don’t have a plan in place. Over 90% of people suffer financially in retirement and this is caused by lack of planning. The first step is knowing when you want to retire. For instance, if you plan to retire early, say at the age of 50, you will need to start investing about 20 or 25 percent of your salary on a monthly basis. Unless you start working on your plan right away, you may not be able to achieve it on time.
Not saving enough: Saving for retirement is one of the most important financial moves you’ll undertake. If this aspect is done right, your golden years can be filled with joy, freedom and peace of mind. The core question you need to answer is– how much do I earn and how much do I want to put aside for retirement? Remember this is not a one-off thing, it requires commitment and your ability to envision a fulfilling future.
Not starting early: It is neither too early nor too late to start saving towards retirement. A lot of people don’t start saving and planning for their retirement years on time, assuming that employee benefits will be enough. We’re sorry to burst your bubble, but employee benefits will not cover all your retirement needs. This is why you need to take action and begin planning for your own retirement. If you haven’t begun yet, today is a good day to start. It might mean cutting down on some things but keep your eyes on the bigger picture.
Spending from your retirement fund: Other responsibilities will spring up but never make the mistake of taking from your retirement saving to tend to these needs unless it is absolutely necessary. You’ll replace it, you’d say, but what if you don’t and it becomes a habit? This will only short change you in your later years and believe us, no one wants to struggle with financial instability in old age. It’s really not worth it.
On a final note, as the years roll by, you will see your self changing jobs and climbing higher in your career. This could also mean a bigger paycheck. If you started with putting aside a small amount of money for retirement, as your finances double, it would be a good idea to double your retirement funds too. Remember the ultimate goal is to live life in full with no worries in retirement.
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