You have time to travel, see the places you have always wanted to, you can start hobbies that you never had time for – they don’t call these years the golden years for no reason. It’s a very special time, but, if you don’t plan properly for the cost of retirement, it can be a very stressful time. Needlessly so. Now, you may think that retirement is still a little while away for you so you don’t need to worry, but the reality is that you need to be preparing for it well in advance. Not convinced? Here are the reasons why calculating (and planning for) the cost of retirement is pivotal:
It ensures that you stay financially independent
By carefully planning and calculating the cost of retirement, you are empowering yourself to make sure that you have enough money in retirement to stay financially independent. Having to rely on others (such as your children) for a source of income is not great for morale in retirement, and you will always worry that you are a burden to your family. You want to do everything in your power to make sure you are financially independent in retirement. You can also do this by ensuring that your debts are paid, seeing where you will be able to cut costs and by calculating exactly how much you need to have in your savings.
It allows you to maintain a certain standard of living
When you calculate the cost of retirement, you will do so based on the standard of living you currently enjoy. The chances that you will want to downgrade from standard in retirement is probably very slim. The benefit of working out what it will cost you and adequately planning so that you can afford those costs is that you will be able to maintain that standard of living. You may cut costs in some places that make sense, such as moving from your large five-bedroomed home to a two-bedroomed apartment, but generally speaking; you will maintain the standard of living you desire.
It gives you time to account for inflation
Often, when people start planning for their retirement they forget to account for inflation. The hard truth of life is that things will go up in price, and very seldom is the opposite true. If you calculate the cost of retirement early on, and you plan properly, then you can ensure that in your calculations you account for inflation, and are not caught by surprise when you do retire, and you look at what you have left, and what things cost. To help you with this, we suggest researching how to calculate the cost of retirement, and keep in mind there are loads of online tools, such as an online retirement calculator, to help you with this.
It ensures that you plan your estate
While none of us likes to think about it, the reality is that we can’t be here forever. There will come a day where we are no longer around. One of the kindest things you can do for your family is to plan your estate well in advance. This is something you should start thinking about when you begin calculating the cost of retirement and plan for it accordingly. If you do it in advance, you can set it up in a way that will save on costs for your family for when that day eventually comes.
It allows you to make amendments while you are still able to
Probably one of the most vital reasons why calculating the cost of retirement is if you see that you won’t achieve your goal, then you can put some things in place that will help you do so in the future. One way of doing this would be to diversify your investment portfolio further, but perhaps with something more robust, like property, where you can set yourself up in a way where you are guaranteed a monthly income from someone renting your property.
If you are looking for a phenomenal property investment opportunity, then take a look at the properties in Calpe, Spain, where the incredible climate and gorgeous surrounds keep people coming, year-around. Contact us to find out more information about the area, and buying property in Calpe. Our exceptional property portfolio is bound to have the ideal property for you.