The fifties is when most of us begin to genuinely panic about retirement. Retired life doesn’t seem really secure because some of us lived a life defined by heavy expenses and have not saved much for the golden phase of life. Now, what can a 50-year-old who is worried about retirement do?
Curb The Household Spending:
Even if your income continues to flow in, be quick to curb the household expenses. By this age, the number of dependents usually drop, so focus on reducing the household expenses and divert focus from investing in physical assets like appliances, house, car, etc. Your agenda should be to save as much as possible. Spend only on mandatory expenses like fuel, groceries, medicines, utility bills, etc. Say big ‘No’ to spendings on recreation, tourism, etc. Else, it becomes inevitable to compromise on the quality of life, based on the income generated during the retirement.
It Is Never Late To Begin Savings For Retirement:
Yes, starting early helps big time. But if you are worrying that it is too late now, you are not on the positive track. A large amount is generally available to save as one advance in income and age. So do not worry about missing the power of compounding. Instead, try saving as much as possible. If a quantity contribution happens during your 50’s, you are still on the track.
Close All Sorts Of Debts:
Retire all your debts before retirement. Do not go beyond your means to send your kids to the best college. Rather, avail loans that financial education needs. Let your children work after education and repay their loans. Focus on building enough retirement corpus that can earn enough to replace your salary when you retire.
Work Towards Your Second Innings (Next Career):
Expenses don’t stop with your paychecks. So it may be wise to plan to continue earning even during the retirement, even if it is little. Prepare your ground even before you retire. Pick opportunities like a teaching assignment in a local college or freelancing.
Align Your Assets To Work In Your Favour:
Make a thorough plan to ensure that your assets work the best during the retirement days. Ensure that your assets generate a fixed income that covers all your expenses. Create a diversified portfolio and be wise at investing and generating regular income, with minimized risk.
In conclusion, 10 years is still useful to make retirement preparations. Realign your assets, stop spending too much, and save as much as possible. Aggressive saving and investing habits help big time. If you need more personal finance advice, approach fiduciary like ArthaYantra. We can guide you through your retirement planning, irrespective of your age and wealth status.