What You Should Do When Planning for Retirement

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Working year after year to prepare for your golden years may seem like a chore. The road to retirement can seem long and winding, but once you get there, you are free to enjoy the fruits of your years of toil. To make the most of your retirement, careful planning is a must, ensuring you can pay the bills without having to compromise.

First of all, there are the financials. Work out how much you can afford to live on once you retire and how much saving it would take to get there. Also, there are different types of pension and savings accounts to choose from – some offer higher interest rates than others.

It is imperative that you check how much you can receive. Statistics from 2015 reveal that the average annual income from private pensions stood at just $9,376. Topping up with the state pension is a good start.

A New Set of Wheels

Speaking of luxuries, you will want a car that is comfortable and easy to get into and out of. According to AA Cars, budget is an important consideration as well. Think about what you can afford to buy; it should be cheap to run, cheap to insure and cheap to repair. You don’t have to compromise though; second-hand cars can be surprisingly reliable.

Something else you should arrange is where you plan to live. Are you set on staying where you are right now? If so, as long as you own your property, you have nothing to worry about. However, if you plan on relocating to a retirement villa or nursing home, it’s important to pick the right place to spend the rest of your days.

This nursing home finder has details for over 15,000 locations across the US. Ideally, you won’t have to move into one until you reach the stage of your life when you need a little help.

Clear Your Debts

Going back to this issue of money, if you have any debts – a personal loan, credit card bill or mortgage – do your best to clear them. Identify ways in which you can save a little extra cash – cancelling subscriptions to streaming services, fewer meals out – and check your bank statements.

The sooner your debts are gone, the better for when you reach retirement age. If you’re paying off a mortgage, owning 100% of your home means you can sell it in case you plan on moving somewhere like, say, the Florida Coast.

Being debt-free in your 60’s will mean you are able to live without fear of not having enough cash in the bank to pay for that holiday you’ve always wanted to go on!

Melissa Thompson writes about a wide range of topics, always revealing interesting things we didn’t know before. She is a freelance producer for USA Today, and a contributor at Technorati. She lives in Utah with her 2 kids and husband. Melissa Thompson can be reached via LinkedIn or Twitter @melthompson88. Please follow and friend her on either site.