Budget Planning For Retirement Should Be Taken Seriously
Budget planning for retirement means taking responsibility for your own retirement.
Don't rely too much on social security retirement benefits or state pensions because they are not designed to provide you with a comfortable lifestyle in retirement.
They are designed as a safety net to ensure that you don't starve.
It is great news that people are living longer after they retire from work but that is putting huge strains on governments to maintain their pension obligations and provide care to larger populations of old people.
So how can you ensure that your finances are in order for you to enjoy a happy retirement? A good way of achieving this is to take charge of your own retirement plan.
Your retirement plan should be properly documented on a spreadsheet or on an analysis paper.
The spreadsheet should include these categories: Projected Retirement Income from: * state pension/social security retirement benefits * Company pensions (defined benefit/defined contribution) * annuities * interest from savings * rental income * dividends, etc * Less tax on total income (a deduction from total income to give you a net income after tax) Projected expenses including: Household expenses * rent * rates/council tax * food * utility bills (gas, electricity, water charges) * household insurance * house repairs and maintenance * telephone bills * television license * cable tv subscriptions Motor expenses * petrol & oil * car insurance * road tax * motor servicing and repairs * subscription for breakdown service Personal expenses * clothes * life insurance cover * medical cover * loan repayments * savings plan * charitable donations * gifts for special occasions * personal grooming Holidays, leisure and entertainment * theatre and cinema tickets * tickets to support your sports club, etc * subscription to gym/golf club * night outs with friends * luxury cruises and holidays Don't forget to allow for inflation in your budget planning.
It may be a good idea to try out the plan six months before your planned retirement to see how you manage on your budgeted retirement income and expenses.
If you find yourself struggling to manage on the budgeted income and expenditure, perhaps you might consider taking a part-time job when you retire to supplement your retirement income.
Don't rely too much on social security retirement benefits or state pensions because they are not designed to provide you with a comfortable lifestyle in retirement.
They are designed as a safety net to ensure that you don't starve.
It is great news that people are living longer after they retire from work but that is putting huge strains on governments to maintain their pension obligations and provide care to larger populations of old people.
So how can you ensure that your finances are in order for you to enjoy a happy retirement? A good way of achieving this is to take charge of your own retirement plan.
Your retirement plan should be properly documented on a spreadsheet or on an analysis paper.
The spreadsheet should include these categories: Projected Retirement Income from: * state pension/social security retirement benefits * Company pensions (defined benefit/defined contribution) * annuities * interest from savings * rental income * dividends, etc * Less tax on total income (a deduction from total income to give you a net income after tax) Projected expenses including: Household expenses * rent * rates/council tax * food * utility bills (gas, electricity, water charges) * household insurance * house repairs and maintenance * telephone bills * television license * cable tv subscriptions Motor expenses * petrol & oil * car insurance * road tax * motor servicing and repairs * subscription for breakdown service Personal expenses * clothes * life insurance cover * medical cover * loan repayments * savings plan * charitable donations * gifts for special occasions * personal grooming Holidays, leisure and entertainment * theatre and cinema tickets * tickets to support your sports club, etc * subscription to gym/golf club * night outs with friends * luxury cruises and holidays Don't forget to allow for inflation in your budget planning.
It may be a good idea to try out the plan six months before your planned retirement to see how you manage on your budgeted retirement income and expenses.
If you find yourself struggling to manage on the budgeted income and expenditure, perhaps you might consider taking a part-time job when you retire to supplement your retirement income.
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