Women face unique challenges when it comes to retirement, as many have experienced gaps in their careers to take care of family responsibilities, lower pay grades and part-time work throughout their work history. In addition, women also have increased longevity that makes retirement planning crucial. In order to make sure your transition into retirement goes as smoothly as possible, take a look at these tips which will help you better prepare yourself for your retirement. To get help planning your retirement, visit Suncorp today.
1. Do the Math.
Although it would be amazing to just cruise through your retirement with the standard of living you’ve enjoyed throughout your working years, it’s not guaranteed if you don’t do the math to find out just how much it will cost to maintain that standard of living. To calculate how much you will need in retirement, you want to keep in mind how much you have saved, how much you plan on saving yet, the age you will retire, salary replacement while in retirement and your expected rate of return. Figuring out how much money you need in retirement is very important, as you don’t want to risk running out of money several years into your retirement. If you want to enjoy an active retirement, you also want to make sure you have enough saved for your activities, such as travel.
2. Diversify Your Investments.
When it comes to retirement, you certainly will want to diversify your investments. This means you want to have a wide variety of different kinds of investments more so than having a lot of investments. It is important to invest some of your assets in cash savings accounts, bonds, stocks and real estate, if possible. The more diverse your investment portfolio is, the more likely you will be able to withstand any losses. On that note, it is also very important to choose investments that are more conservative as you get closer to your retirement and during retirement. You don’t want to be taking big risks with money you will need in your retirement.
3. Keep Learning.
As you’re beginning to think about retirement, make sure you’re doing everything you can to educate yourself on how to handle your finances as you reach retirement and during your retirement. The more you know, the better off you will be at managing your retirement money and making sure that everything goes smoothly. Read as much as you can about how to prepare yourself for retirement and take note of any retirement tips that may help you during your retirement. As you learn more about retirement finances, you’ll feel more comfortable about your own retirement planning.
Overall, retirement is a time many people look forward to. So, do your best to prepare yourself for this big change in your life. The more ready you are to retire, the more you will be able to enjoy your years of retirement. So, find out how much money you need saved, make sure your investments are diversified and keep on learning along the way to make the most of your retirement!