Retirement is an exciting yet challenging phase of life. It’s a different kind of independence, as it frees you from the workforce yet prepares you for your senior years. If you’re already planning to retire, here are five things you should do first:
Do you know that housing costs take up 30% to 40% of an average person’s income? Due to this, it’s only advisable to pay off your mortgage before retiring. Sit down with a property lawyer and review your mortgage statement to ensure your liabilities before retirement.
Where do you plan to stay during retirement? Are you going to purchase a smaller home or live in your current property? If you decide on the latter, make sure it’s comfortable even in your senior years. Also, check for major and minor home repairs, which you should financially settle before retiring.
Write a Will
It’s only smart to write a will whether you’re single or married with five children. Other than determining who receives your assets, a will can also protect any existing business when you pass away. A law firm that specialises on wills in Townsville suggests storing your statement on a bank after writing.
Go Over Life Insurance
Life insurance is more costly during retirement, which is why it’s only ideal to get a plan today. Go over your life insurance needs, such as nursing, housing, and long-term care to guarantee comfort and flexibility as you age.
Prepare a Budget
Australia’s Age Pension may help with your financial needs, but it’s still important to prepare a spending plan to give you an idea of your living expenses upon retirement. List down the basics, such as food, transportation, housing, and miscellaneous requirements like clothing, entertainment, and travel. Set a budget for the next 10 to 20 years.
Secure your assets and financials before signing that retirement document. Doing this does not only guarantee your comfort but also the people you’re going to leave behind.