What I Wish I’d Known About Preparing For Retirement

It’s never too early to prepare for retirement. Even though you might be happily concentrating on your career progression—maybe you’ve just secured your first post—or you’re starting to think about winding down a little bit after three decades of hard graft, retirement will factor on the horizon at some point.

The most important thing to know is… The golden years of your retirement will be that bit easier to navigate the earlier you prepare for it.

The following details the most common ‘surprises’ that recent retirees wished someone had told them about when preparing for what should be one of the happiest periods of your life. 

Retirement Planning: What you need to know

• The 5 vital things to factor into your retirement planning

The 5 vital things to factor into your retirement planning 

1. Healthcare expenses can be substantial: The average 65-year-old couple will require around $280,000 to cover their medical expenses. This includes Medicare premiums, dental care, eye care, hearing aids, prescription drugs, etc., all of which aren’t covered by Medicare. Long-term care is also not usually covered, making the purchase of long-term care insurance a valid consideration.
2. Inflation has a big impact: This is more so in retirement than when you’re working. Health care costs and long-term care expenses are particularly affected, meaning that any retirement planning should take inflation into account.
3. Don’t rely on dividend income: Interest and dividend-bearing accounts are no longer the failsafe they used to be. This is because companies tend to pay out fewer dividend profits than they did, say, 30 years ago. While such income can make up a portion of your retirement income, it’s likely this will only be a minor source.
4. Unforeseen events will happen: We only need to look at the current pandemic to realize that even the best-laid investment plans can go awry without warning. What if the stock market bombs? What if your home declines in value? The only way to effectively plan for such events is to take professional advice. Retirement planning is tricky, so it pays to take the best advice now, rather than waiting until something happens and having to ride the shockwave.
5. Unexpected expenses can be an unwelcome surprise: Car repairs, home repairs, family support… All of these can represent substantial outlays and, if you’ve not planned for such outgoings, can have a significant impact on your wealth. Many retirees say they worry about their inability to fund such financial shocks. The way around this is to set aside adequate funds to cover such emergencies. 

While all of this might appear gloomy, good retirement planning will go a long way to alleviating such issues. On a positive note, retirement for most is a wonderful time of life. Most people are generally happier in retirement than at any other time of their life. Time becomes your most valuable asset, with the ability to control this being something we have precious little power over during our working years.

The key to a great retirement strategy can be defined as, Prepare for the worst, hope for the best’. Plus, taking professional advice to help you understand the complicated requirements of retirement planning is one of the best things you can do. 

Partner With Capital For Further Generational Investing Security

Your financial priorities change as you approach and enter retirement. Ensuring that your wealth lasts through your golden years—and that’s for all of them—and that this is enough to support your expected lifestyle, is the difference between enjoying this special time of life and the stress of running out of cash.

At Capita, we specialize in making this your reality. No matter what your financial status right now, we’ll develop a solid, bespoke plan that includes investments, tax planning, social security, and more. 

Don’t leave your retirement to chance. Visit https://www.capitafinancialnetwork.com/services/income-planningnow and put your future security first. Because retirement sneaks up on you—just ask anyone else who’s already there…