3 Simple Rules for a Happy Retired Life
Regardless of which phase of life you’re in currently, retirement is inevitable. At some point in time, you’ll either start approaching it by virtue of age or make a conscious decision to quit the 9-to-5 hustle. Irrespective of how it happens, before actually doing it, you should first foresee what your life would be afterward.
A comfortable retirement is a dream for many. But it can only be materialized through proper planning. So if you haven’t thought of it yet, we suggest you start now.
We know it might get confusing, and that’s why we’re here to help. Check out these 3 simple rules that can help you sail smoothly in your post-work life.
We shout out loud on the 70-80 percent rule
If you’re getting all comfy assuming that once you’re retired you’ll be able to do just fine with half of your present-day expenses, my friend, you’re seriously mistaken. There are going to be plenty of things to deal with then too like medical bills, utility bills, mortgage payments, and whatnot. In this sense, retirement can make you quite unhappy if you don’t have a comfortable saving cushion and you’re constantly struggling to survive.
So, what should you do? Well, there’s no definite rule on the current and future expense ratio, but trying to find a source of income that can replace about 70-80 percent of your former paycheck would be a good goal to focus on. That way you can continue to manage your everyday expenses and maybe still save a little.
But things are always different for different people. Some can manage their finances with 50 percent of their former income while some might need 100 percent. Try to find your ratio and then customize your savings as per the life you wish to live post-retirement.
Give a good thought to 401 (K) retirement accounts
Although the government makes sure you lead a comfortable retired life by making it mandatory for your employer to contribute 5-8 percent of your regular paycheck to the Social Security system, you should realize that that amount will only make for about 40 percent of your entire pre-retirement earnings if your paycheck isn’t extraordinary. That’s why you should try to get onboard about schemes like 401 (K) retirement accounts and IRA to ensure your future while you’re still working.
Don’t ignore your future healthcare expenses
Some day in life you’ll have to start aging gracefully. And when you age, there’s no escaping certain medical expenses. Most senior citizens are caught off-guard by healthcare costs. As per the latest estimate by Fidelity, an average senior couple spends about 2,95,000 dollars throughout their retirement on health expenses. So starting with a healthcare savings account would be a wise thing to do. Taking a health insurance plan is also highly advisable.
Wrapping it up
Once you have a clear plan in sight, don’t stop there; start working hard to implement it. But once you shape it into a reality, we guarantee, you’ll have satisfaction for a lifetime.
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