With the cost of living increasing and people living longer - Have you planned for your retirement?
According to biomedical gerontologist, Dr Aubrey De Grey, the next person to live to the ripe old age of 150 has already been born.
What if that's you?
What if you live till 80 or 100? Will you have enough money to last you that long after you retire?
Ten or twenty years ago, collecting your last paycheque at the age of 65 was a reasonable expectation. But as life expectancy and the cost of living increases, you need to consider working for longer or risk becoming a burden on the state, or worse, your family.
Let's look at how you can avoid this from happening to you.
How to prepare for a successful retirement
And to do this you need to know the answers to five key questions:
1) How long do you have before you’re going to need your investments to generate income?
2) How long do you need your investments to generate income for?
3) How much capital do you have to generate income?
4) How much income do you need?
5) Do you have an alternative source of income?
To find the answers to these questions, you need to be realistic in your retirement planning. Once you find the answers to these questions, you can start preparing for your retirement.
It’s not unrealistic to expect hiccups along the way, that’s why the FSPInves
t team have developed a retirement calculator
to help you figure out exactly how much you need to live the retirement you deserve.
The calculator is really easy to use and completing the entire process, shouldn’t take you more than ten minutes.
The first thing you need to figure out is how much money you already have saved up for your retirement in retirement annuity (RA) or a pension fund.
Then you need to add the lump sum amount that you expect to receive after you get your last pay cheque.
Once you have this information, you can make the right investment decisions and decide if you will continue to work to earn more cash once you reach 65. This is the best way to make sure that you have enough money for retirement.
As I mentioned, with the cost of living constantly increasing and life expectancy going up along with it, don’t miss out on this opportunity to plan for a happy and lucrative retirement.