The following is a guest post about retirement. If interested in submitting a guest post, please read my guest posting policy and then contact me.
People work all their lives to ensure that they have a comfortable retirement and something to show for their years of hard graft, but without the use of a crystal ball, how will you know how much you will need to live comfortably? This is especially true if you have dreams of retiring early.
As years go by, the price of well, everything, goes up! So whilst you think you are putting away a good little amount to fund your older years, you could fall into the trap of falling a little short when the day finally comes to finish work.
The fact is retirement is so far off it probably doesn’t cross minds as often as it should and people will put money away and think little of it in the meantime. However, it is important to sit down and do a few sums to make sure you are knowledgeable about your investment.
Like previously mentioned, unless you have the ability to see into the future you aren’t going to know how much the price of everyday amenities is going to cost, so a sensible way of gauging is to benchmark what the cost of living is today. Aiming to generate the same wage during your retirement as you get today should leave you in a comfortable position, with money to enjoy the finer things as well as cover your bills.
Your cost of living will change by the time your retirement comes as the kids will have flown the nest and said nest should be mortgage free by that time. OAP’s (yes, you will be one at some point!) also incur many discounted prices, so it is a little bit of give and take and being sensible with your estimate. You can learn more about your own retirement at by clicking here.
You are in control of the life you are working towards, do you want to live like you do today minus work, or do you want to live up your later years doing everything you couldn’t when you were young? It is completely down to you to decide the lifestyle you want when you retire.
The truth is, if you want to enjoy your retirement you are going to have to invest a fair bit of money, if you are expecting around $25k a year when you retire that means you are going to have to save in the region of around $250k to ensure you have this, which is ALOT of money and unless you are a super high flyer, it is going to be hard work to get this fund in place whilst paying for everything else now.
Whatever would have been spent on mortgages or pension savings whilst you were working will ultimately become yours to play with, but get started soon, every year makes the difference when it comes to putting money away for your retirement and as they say, every penny counts!