A long term plan of attack is going to have to be put into place as quickly as is possible if the number of future pensioners are going to not suffer from poverty, and not many people of a working age are planning ahead, and this could see them reaching retirement age and then suffering the consequences of not planning for their retirements.
If we take a look at the UK for example there are currently in excess of one and a half million people of retirement age who are living on low incomes.
However, those living in poverty have dropped significantly over the last few decades, and that has been thanks to long term planning coupled with house prices increasing dramatically over the years, and many pensioners actually owning their own homes.
But with many working age people now choosing to rent as opposed to owning their own homes, this is certainly going to be storing up problems in later life, for rental payments on their houses, apartments or flats will need paying in later life, whilst those who took out a mortgage early in their working careers will have had that mortgage fully paid off by the time they retire.
Not only is getting and paying off a mortgage as soon as possible on aspect of a financially stress free retirement, people of a working age do need to start funding their pension pot as early as is possible. But thinking many decades ahead is one thing that many younger working age people do not actually spare any amount of time too!
Tips for a Financially Stress Free Retirement
Below we have highlighted several ways that you should start to plane for your retirement as early as is possible, even as a teenager of working age it is never too early to start planning ahead and by doing so you will not be adding your name to those pensioners living in poverty when you reach retirement age!
- Pension Planning – You pension pot needs to start to grow from the very minute you start working, it will pay dividends for you to shop around and get the best advice for taking out a pension plan and often singing up to a pension will be easier than you think as most work places have their own in house scheme which you can move around with you if you change jobs at any stage of your working career.
- Taking Out a Mortgage – Renting a place to live is going to see you getting no long term return, if however you choose to buy a house as soon as you can over the life time of your mortgage you will see a steady growth in the value of your home. Paying rent is essentially dead money as it will be a constant drain on your finances to which you will be getting no return.
- Regular Savings Plan – Whilst paying a small regular amount into a savings account is not really going to be any type of finance strain on you, by doing so you will always have access to emergency funds at a later date. You really should consider opening up a small savings account using our guide to find the best saving rates and popping a minimal but regular amount of cash into that account each week or month.
Whilst allocating funds to such an account may be difficult when you are paying for you day to day living expenses, you really should consider doing so, as drawing funds from a savings account is not going o se you having to pay interest as you would do by having to take out a loan when emergency funding is required by you!
- Health Care – As people get older they do of course start to suffer many more ailments and whilst many countries now offer some form of National Health Service, should you country of residence not offer this then you need to take out a health care policy or insurance type place at an early age.
Your premiums will not be as high if you take out such a plan as early as you can than they would be by taking out such a policy in later life, and by taking out such a plan you are not going to be in any way shape or form burden with some huge charges should you require medical treatment later in life.