As we are nearing to our retirement age, we most of the time feel worried about the cash flow and where it’s going to come from. Many a times, people think a little differently about retirement. They feel they will go more on holidays with their families once they retire, spending more time with them and do all things that they were not able to do when their life was busy at work.
Retirement savings
Its never to late to start planning about your retirement savings. And as you are getting close to your retirement age, you need to make sure that you have a good amount of savings protected for you. It would be very disappointing if you have very little or nothing left before you retire. So its important that you have a good amount of savings planned well ahead of time in the present economic climate.
When you have to do the investment, do it in the right time. If you delay in savings for a few years, you will end up losing a lot of money from saving and this will have a dramatic effect on your retirement income. Recent studies show that a delay of 5 years can have a big effect on the value of your investment. The longer your money is invested, you can expect bigger returns that will be for your own benefit.
Once you retire, you can take out 25% of your retirement savings as a Tax Free Lump Sum. This will create more income in retirement. If it is invested correctly, it will be tax free and allow you to retain the lump sum, and you can use it for whatever you like. For example, a dream holiday, or buying a sports car etc.
Don’t delay in creating your retirement savings. It will be too late if you start creating your retirement savings at a later part of your life. There is a limit to what can be done if action needs to be taken right at the point of retirement.
Browse through the internet and you can take a free consultation with one of the expert financial advisors. They will guide you in planning your retirement savings.
- Resources:
http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html
This entry was posted on Friday, August 23rd, 2013 at 6:52 pm and is filed under Savings. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.