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.
More in Retirement
Famed Rolling Stones Guitarist Ronnie Wood Lists His London Residence for $5 Million.
Ronnie Wood, one of the pillars of The Rolling Stone band, performing as the lead guitarist, also doubles as a great...November 3, 2020
Look Who’s The New Owner of This West Village Townhouse!
How do you feel when you buy something new for yourself? We’re guessing you can barely contain your excitement and can’t...October 30, 2020
This is The Retirement Planning Error That Could Cost You $1.5 Million
When you’re preparing for retirement, you’ll be met with countless decisions. Sure, some may seem like they don’t really matter at...October 30, 2020
Profitable Side Jobs That Can Be Converted Into a Full-Fledged Career
There are numerous part-time jobs or self-employment opportunities that would pay you well. However, as time passes, the family increases, so...October 30, 2020
Tips to Become Better At Your Profession
Nowadays, everything is expensive. If you’re a spendthrift, you’ll have to look for a high-paying job or an alternate source of...October 30, 2020
Step Inside the Obamas’ Beautiful New Home On Martha’s Vineyard
Former American President Barack Obama and his gorgeous wife, Michelle, need no formal introduction. The influential duo spent most of their time...October 28, 2020
Tips to Ensure Your Retirement Is Everything You Wished For
Ageing is a part of our life. Even though we always wish to stay in our twenties, it’s not possible. Life...October 28, 2020
Designers That Cardi B. Can Reach Out to While Creating Her Dream Home
Cardi B has been making all sorts of noise after being thrown into the limelight in 2013. Belcalis Marlenis Almanzar, more...October 26, 2020
Charli XCX Becomes the New Resident of Calvin Harris’ Hollywood Hills Home!
Who thought the first time we’d be seeing Charli and Calvin’s names together would be on a home listing? Yet, here...October 25, 2020