A lot of us are thinking about the here and now in terms of what we are doing with our money. We have a vague idea of what’s going to happen in the future when we retire, but think that it’s years away yet. While that may be true, it’s still good to get a clear idea of what’s going to happen when your job runs out and your life is meant to truly begin…
Plan A Pension
If you haven’t been contributing to a pension fund in the country that you live in, you may find it harder to get the money together when you come to retirement age. There are private and state pensions available depending on where you live, and it is these that will be able to see you continuing to thrive once you have given up the day job. A lot of people return to work in a different trade to the one that they have spent their whole working lives in, or move to part time instead of full time to keep them ticking along and give them a bit of extra cash. This is fine and doable, but you need to also look for an alternative plan just in case that’s not an option that’s available to you.
Start A Fund
If you haven’t invested in a pension yet, your company or business doesn’t offer one or you haven’t considered starting a private pension in lieu, don’t worry - there are other options available to you, such as SMSF (self managed super funds). There are self managed super fund services available for you to have a look at to ensure that it is something that works for you. It’s something that is quite a viable option for most people because there is the availability for other people to invest into it, giving it a good core to be able to work off once you hit retirement and claim the remunerations that is has to offer.
Invest In Something
Although it may not be an option now, it certainly should be once you have the funds available to you. Utilising this money to put into something physical, that is able to be bought and sold or rented/loaned out, is a way to make a stable income but also have equity available to you. It’s this safety net that a lot of people rely on in retirement in order to keep themselves financially secure. This doesn’t mean that you aren’t entitled to a pension or SMSF; it’s simply another option for you to be able to top up on the income that you receive from these. It can be an extremely lucrative choice if you time it right and the market is responding accordingly; especially if you are investing in property. Make sure that you are aware that this is income that is to be taxed, and avoiding this fact could put you into awkward consequences - stuff that you certainly don’t want to face when you’re meant to be enjoying your time off.