Planning Your Ideal Retirement

There are many things to take into account when planning retirement: your dream lifestyle, the place where you want to live, the money to save for retirement, the expenses, your needs, such as healthcare and other services, etc. This is why it is strongly recommended that you start planning your retirement early instead of doing it a year or two before you actually retire. Start at least with a general idea of where and how you wish to spend your later years, and begin to save up for retirement on a regular basis in order to have enough money to sustain your retirement goals and needs. Also, as financial aspect is probably the most complicated part of planning retirement, you might want to get consulted with a professional advisor.

Here are the most important thing to consider when planning retirement:

1) Moving to another place. This is what many retirees do for various reasons: some want to be closer to their children and grandchildren, others simply move to better locations (closer to the beach, a place with better climate, etc.). Another reason why you may be interested in moving is simply reducing your expenses and getting a significant one-time profit from selling your large family home you don't need any more now that your children have left, and buying a smaller, cheaper one. This is a big decision, and, thus, it should be carefully planned with a lot of factors to consider, such as cost of living, infrastructure, access to healthcare and other services, proximity to your friends and family, and many other things.

2) Plans for work. It is up to you, when to retire, and it is not necessary to stop working right after you retire. You can choose to gradually transit to working part-time, which will make you earn less, but it is still better than nothing, and it will let you save up some more and postpone the necessity to use your retirement savings. Some retirees prefer to focus on a job that had always interested them, but was less profitable, or starting a small business.

3) When to retire? There is no official retirement age, but you are allowed to use your retirement savings after the age of 55. A government pension is paid to people starting from 65 (men), and 64 (women). The age of retirement also affects your social security benefits, so, if you want to get the maximum of benefits available for you, this factor should also be considered.

4) How much money you need to retire? There is no simple answer to this question, because all people have different needs and standards. Many experts advise to save the maximum you can afford to your retirement plan, as well as building your assets and finding some additional sources of income other than your job. Some of these income sources, such as investments or the property you rent out can produce income long after you retire.