Never rely on the Pension Fund which is available from the office where you work. That amount would not be tailored to your individual needs. When you compile the Pension Fund, you must take into account the lifestyle you want and inflation you have to face.
Here are some things you can consider in planning for retirement:
Examine Cost of Living In Your Retirement
The amount of expenses in retirement will depend on the lifestyle you expect. At least you would want adequate financial conditions to pay the basic needs of daily life is not it? You also need to consider in retirement you will not get salary payments again. While on the other hand, the cost to your health care will increase. All of this funding are quite expensive, so plan for retirement for 20-25 years is feasible.
Price Increase in Retirement
Prices of goods and services tend to be higher because of inflation. Maybe you do not realize this now because they still get a paycheck every month. And salary increases each month may still be offset rising inflation. At the time of retirement, if you do not have a side business, then the savings you have should be able to keep pace with inflation.
Determine the amount of funds that must be saved
After researching the cost of living and inflation on your retirement, your next step is to calculate how much money you’ll need at retirement. A good reference for an estimate of how much you should prepare is about 70% to 80% of the income that you would get before retirement.
Investing for Retirement
There is never a two investors are exactly alike. Different objectives require different strategies to achieve them. Over time you need to adjust and monitor the progress of your funds according to age and changes in investment objectives.
In financial planning, you should include insurance as protection for the value of your Economies, Health, Critical Illness and of course with him makes you comfortable. You when the less fortunate, having an accident then the insurance that will work for you.
Happy retirement plan