With the right planning, comfortable retirement doesn’t have to be as costly as you might expect. Use this calculator to help you figure out how much of a retirement fund you need, and how much you need to save to work towards that sum.
How should I begin preparing for retirement?
Many people don’t pay much attention to preparing for retirement until they reach middle age. But you should start early, to ensure your financial liabilities are kept minimal. Here are some steps.
Clear your mortgage
The main idea is to ensure a roof over your head that isn’t weighing you down. It is advisable to repay all mortgage loans on your home before you reach your retirement age. Renting is not ideal as rental rates are dependent on economic situations. Plus with inflation, you may not have a foolproof plan in ensuring that your retirement pot will be sustainable amid future uncertainties.
Be insured fully for medical costs
Part of aging includes increased risk of diseases and accidents. This naturally means higher medical bills and possibly the need for long term medication. Ensure that huge medical bills will not bankrupt your retirement savings by having adequate medical insurance.
Assess your lifelong income stream
Ensure your lifestyle is sustainable, and supported by a lifelong income stream—this can come in both fixed streams, and in amounts that vary.
Quantify your retirement lifestyle as accurately as possible
That’s what this calculator is for. Whenever we speak to people about their retirement planning, the common mistake that most make is underestimating how much they’ll need to survive comfortably in the future.
We recommend tracking your expenses as a good start, so you have a quantifiable basis of comparison every year. The Planner Bee app is the easy way to do this.
Remember: To be able to retire, you will need to be debt-free, have sufficient medical insurance, ensure your residential property is fully paid up, and sort out a steady stream of income for as long as you live.