Posted by on May 23, 2017 in Career Insights | 0 questions

Many people who don’t save for retirement wisely often outlive their assets. With the average lifespan going up all the time, it’s more important than ever for people to take responsibility for their retirement security. If you’re thinking far into the future, then this is a great sign already! Here, we’ll list some of the best advice for ensuring a bright, financially secure retirement.

Have Savings and Spending Plans 

This is an absolute must for everyone, no matter the state of your personal finances. Planning for retirement can be extremely hard, as the implications of all the choices you make tend to be magnified greatly. You have to determine the amount of savings you’ll need to sustain your desired lifestyle in retirement.

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Polishing off this calculation can give you a lot of confidence, and motivate you to make important tweaks to your lifestyle that may be needed to hit that overarching target. Spending strategies are just as important. If you enter retirement without a budget, and simply spend whatever comes in, you’re sure to run into problems. A lot of financial advisors recommend sticking to a spending rate of roughly four percent of your savings, which will generally stretch over 25 years.

Use Tax-Efficient Streams of Income

If you’ve still got some way to go before you retire, then this is a tip you need to jump on as soon as possible. If you decided to buy land, stocks, property, or some other healthy asset in the past, then you’re already ahead of the game, and will find it much easier to generate retirement income in a smart, tax-efficient way. Start off by reading up on any of the tax breaks that you qualify for, and drafting a plan to generate just enough income to maintain the retirement lifestyle you’re planning, and while avoiding unnecessary taxation.

You can also help yourself by taking stock of your different bank accounts, and re-arranging things to put an emphasis on actual net retirement income. Not all the money you withdraw from different bank accounts is going to be equal in the eyes of the government. A dollar taken from tax-free accounts will actually be worth a dollar in net terms, whereas a dollar taken out of a taxable account will be worth a matter of cents.

Don’t Retire Too Early 

The freedom of retirement can be very appealing from a distance, but if you rush into it, you could easily wind up regretting it. Like a lot of people, you may have been grinding at an unsatisfying career for some time, and raring to wave goodbye to your job once and for all.

However, it’s a smarter move to reduce your hours before you actually quit for good. Aside from building up your retirement cash cushion a little more, this might also help you return to full-time work if some abrupt shift in your plans comes up. You’ve certainly earned the right to forget about work, but jumping the gun can be a huge mistake!