Questions about Retirement
- September 12, 2014
Even though retirement can feel like its way down the road in the future, the best thing you can do for yourself is start thinking and planning as soon as possible. This article will go through a few questions that you may have and hopefully make you start thinking about what you can start doing to prepare for a great, well-deserved retirement.
How much money will I need? This is probably one of the most common questions asked when it comes to planning for retirement. This question cannot be answered without considering some other questions first. Primarily, you have to consider how long you want your retirement to be for. Ideally, most of us will probably be around for another 20 years after we retire if you retire by 65. However, who knows what the future holds, we could end up living even longer! Once you have decided how long you want to retire for, you have to think about what sort of lifestyle you are wanting and if you still plan to work after 65. If you are planning to travel or go out and enjoy the rest of your life, you’re going to need more money to do so.
Where will my money be coming from? Some of your retirement should be relying on your savings, while another chunk of the money should be from other sources such as KiwiSaver or even working part-time. You may have money coming in from other pensions, investments, or cash deposits that you can count on. There is also no shame in continuing your work after 65, if you are still capable and enjoy it, there is no harm in making more money to ensure that you do enjoy the time you have when you do decide to retire.
What should I watch out for? Something that you should be monitoring is your “dumb debt,” which can be one of the first steps in the commencement of your retirement plan. Start paying off credit cards and loans that you may have so you can start saving your money for retirement. The other task that you should be planning for is not having a mortgage when you want to retire, take the necessary steps to pay off your mortgage as soon as possible! You should also look out for opportunities with a KiwiSaver account, this will immensely contribute to your retirement when both you and your employer are putting money into it.