Think ahead – 7 Tips on How To Prepare For a Healthy and Happy Retirement
When we are in our 30’s or 40’s, retirement seems a long way off. It can be tempting to focus on the here and now rather than consider what might happen a few decades down the line. The trouble is, if we don’t think about it now, we may reach retirement age and regret not giving it the consideration and forethought it deserves. Here are 7 tips on preparing for a healthy and happy retirement.
Save as much as you can
Saving as much money as possible now will provide some much-needed extra cash when you retire. It’s a good idea to try and save at least 10% of your annual income every year. If you can set aside a decent amount regularly, it will make for a far better lifestyle when you are no longer working and want to enjoy the finer things in life. Whilst we all like to splurge now and again but try to be wise with your spending. Work to a realistic budget every month and put any monies that you don’t spend aside. You might be surprised at how quickly your savings mount.
Consider long term investments
Whether you want to invest in stocks and shares or put your money in a fixed-term bond, invest your savings wisely. The end goal is to make as much of a return as possible, giving you a larger lump sum when you retire. Longer-term investments usually attract a higher rate of interest although some do come with an element of risk. Your initial investment isn’t always safe, so do your research on any potential pitfalls before investing. The base rate is fairly low at the moment which, in turn, means that savings rates aren’t particularly high. If, however, you are prepared to lock away your cash for some time, you can still make a decent return. It’s a good idea to talk to an independent financial advisor if you are unsure of the best investment for your situation. They can guide you through the many different products available and help you to formulate a financial plan for your retirement.
Clear your mortgage as soon as possible
This is something that we should all strive to do regardless of when we plan to retire. No longer having a financial noose around our necks can bring a feeling of financial freedom and a huge sense of relief. One of the quickest ways to pay off your mortgage early is to reduce the outstanding term. If, for example, you have 20 years left on your mortgage, find out how much more your monthly payments would be if you were to reduce the term to 17 or even 15 years. You will pay more in the short term but will save thousands in the long run as you will no longer be paying interest on the borrowing. If you cannot afford to reduce your term, consider overpaying from time to time. Most lenders will allow up to 10% to be overpaid in any year. Discharging your mortgage early will allow you to concentrate on your financial retirement plans and free yourself from a large financial burden.
In later life, many people downsize their homes. Children have flown the nest and so there isn’t the same necessity for a larger property. Whilst that will be something you may consider down the line, clearing your mortgage should be the initial focus regardless.
Life Insurance Retirement Planning (LIRP)
Life Insurance doesn’t just pay out upon death, it’s also something to consider for when you retire. Life Insurance Retirement Planning (LIRP) allows you to pay into a life insurance policy that will pay out regularly into retirement and beyond. Premiums differ depending on the cover required and you must fit a certain age and health criteria to be considered. It’s worth speaking to a specialist provider about the products on offer as well as the financial retirement benefits that this kind of plan may bring.
Other Insurances
Many people take mortgage protection insurance or pay into a critical illness policy to ensure that, in the event of redundancy or long-term illness, they continue to have a steady income stream. As we age our health can deteriorate so having a back-up plan is a wise move. If you have bills to pay and a family to provide for, a sudden reduction in income could prove catastrophic.
There are many different policies to choose from offering different covering and including various caveats so make sure you read the small print. Many policies will not pay out until a set period has lapsed, and many will only pay a portion of your current salary. If you are in any doubt as to what policy you should look at, seek the advice of a professional.
Stay healthy and active
Having a healthy and happy retirement doesn’t just depend on money. Being healthy is something we should all strive for. This will ensure that in our latter years we have the health and the energy to live our lives to the full. Being active from an early age will do wonders for our fitness and health when we get older. Whether it be joining the gym, running, or even going to regular dance classes, we should all try to stay active. Our joints and bones change as we get older. Put the effort in now and several decades down the line you will be glad you did. If you want to track your fitness levels, why not consider getting a step tracker or even a smartwatch? They will help you see your progression and can give lots of helpful data about your activity and how your body is reacting to it.
Staying hydrated is very important for our health. Dehydration can cause lethargy, headaches and can make us feel a bit under the weather. Drinking around 2 liters of water per day will make you feel more energized and will do wonders for your skin too!
Getting the right amount of sleep can play a huge part in our health and how we feel. Everyone has differing needs but the average is around 7.5 – 8 hours of sleep a day. If you do struggle to sleep, try reducing your caffeine intake. Many people find that if they stop drinking caffeine after lunchtime, it aids a more restful sleep.
Eat a balanced diet
Eating a healthy and balanced diet is also extremely important for our future wellbeing. ‘We are what we eat’ is a phrase that is commonly used and, is very true. A good diet will protect our bodies from disease. Our blood cholesterol levels regulate and our bodies are provided with much-needed antioxidants. Achieving and maintaining a balanced diet may well define how we feel in later life. Eating a variety of foods such a fresh vegetables, fish, lean meats and fruits, and avoiding processed and refined foods will not only give you increased energy but can influence brain function. Look after your body and mind and you will reap the benefits not only now, but in later life too. You will be glad you did.
