Planning for your retirement isn’t just about joining a pension scheme, it’s about taking control of your entire financial health. And the best time to get started is right now!
Beyond saving towards your pension in an approved scheme or superannuation fund, a big part of being ready for your golden years depends on your habits now, no matter your current circumstances, personally or professionally.
Click for some tips from our BeWise financial empowerment team at the JN Foundation on how you can begin to get your life in order.
- Start by creating a budget– take stock of your expenses and income, so that you can properly assess your lifestyle and determine how you can spend less, save more, or even earn more. Make budgeting a habit!
- Don’t just save, invest! Ensure that you’re saving at least 10 per cent of your income, but don’t simply leave your money lying in the bank, after you’ve accumulated a fair amount of savings, learn how to invest it, so that your money can work for you. The Jamaican stock market is currently the best performing in the world! And various other instruments are performing at high levels, as confidence in the economy remains high. Take advantage of the improving numbers. You’ll be thankful that you did when you retire!
- Start or invest in a business– Use your talents to earn more or venture into business that can provide additional streams of income. Getting a job while in retirement, isn’t always easy, however, you can perhaps create your own employment by starting a business that could also become part of your legacy. However, don’t wait until you retire, start nurturing your business today
- Ask for discounts and take advantage of rewards– There’s nothing embarrassing about asking for discounts, hunting for bargains and taking advantage of rewards. Use them. It will assist to reduce your expenses and less means more for saving and investing
- Reduce your depreciating assets and downsize your property, where you can– It’s no use having more than one motor vehicle, if you don’t absolutely need to, as vehicles are costly to maintain. As you start the journey towards retirement, appraise your assets, including property from which you are not earning, and determine whether some are worth maintaining. Liquidating those from which you are not earning will provide you with income to support you in your retirement years
- Fast track debt payments– As you near retirement, you may want to focus on how you can reduce or even get rid of all your debt. Carrying debt into retirement, makes your golden years that much more difficult
- Get insurance– Insurance is a lifesaver. Medical expenses are costly, but having good health and critical insurance, as well as life insurance makes a big difference, in the event you’re faced with high medical expenses now and in your retirement years. Therefore, it’s wise for you to invest in an insurance plan
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