December 3rd, 2021

It’s not too Late to Start Planning for Retirement

Retirement planning is an inevitable stage in everyone’s life. What determines whether you will be in a stable financial state during that period is how you have been able to save and invest during your active days. It is never too early to start a retirement savings and investment fund that will ensure you spend your latter days in reasonable financial comfort. We all have life goals that require planning, but it is advisable you include retirement planning so as to achieve a desirable retirement goal. Just as it is never too early to start your retirement planning, it is also never too late to start one. If you are close to retirement, it is still possible to start a retirement plan.

Why Do You Need to Plan for Retirement, No Matter How Late?

There are different retirement plans that will suit your future goals. While some people will prefer to retire at the official retirement age, some will retire as early as 50 to 55 years of age. For someone close to retirement age, your retirement plan may be different from someone younger because of the age difference. It is important that you have a retirement plan that specifically suits your post-retirement needs, putting into consideration that you started your plan late. Some of the reasons why you need a retirement plan, regardless of your retirement age include:

  • To know whether to maintain or reduce your standard of living post-retirement
  • To have emergency funds
  • To have a financially independent retirement
  • To fulfill your retirement goals
  • To protect your savings against inflation

Steps to Start Retirement Planning for Late Starters

If you desire to retire at an early age of 55 and you do not have a retirement plan late into your retirement age, don’t be discouraged that you are starting late. You can still enjoy your retirement days even though you start planning late.

Here are some steps you can take:

  1. Hire A Financial Advisor – At this stage, when you are close to retirement, you will need an expert to help you draw out a workable retirement plan. There will be many things to consider because of the timing, so you need an expert.
  2. Determine How Much Cash You Will Need and When You Want to Retire – This will help you know how aggressive you should save and invest to prepare for retirement. It will also help you choose the best retirement lifestyle.
  3. Service Your Debts – Multiple debts are one of the reasons that can prevent you from having enough savings set aside for your retirement. It is important you try as much as possible to service all your debts so you can focus on implementing your retirement plan.
  4. Have A Budget and Stick to It – Once you decide to have a retirement plan, one of the very first things to do is have a budget for your daily spending and follow it diligently. This will eliminate unnecessary spending and you can focus on saving and investing for your retirement.
  5. Consider Working Longer – There is the fear that late starters may not save enough for retirement. It is true, which is why, if you can, consider working a little while longer so you can save more. You can also start a side ‘hustle’ that will bring you some extra money.

Stop Procrastinating

It is never too late to start. Do not avoid meeting a financial advisor regardless of your age. There are many options (many of which you might not know) that an advisor can assist you with. Our team at Cumberland would be happy to guide you.