If you’re an older worker, you’ve no doubt spent a lot of time thinking about retirement. You’ve mused over how you’ll enjoy your time when you don’t have to work. And you’ve thought about all the time you’ll have to spend doing the things you love. But, unless you’re financially prepared, it could all be a mirage. Here are some of the things you’ll need to do to make sure you retire in good monetary health.
Pay Off Your Mortgage
According to statistics, housing costs eat up about 30 to 40 percent of most people’s income. That’s a lot when you think about it. And it’s certainly not something you’re going to want to pay when you have no income. To avoid costs in the future, consider increasing the amount that you’re paying on your home today to try to pay it off sooner. You want to make sure that your house is paid for once you retire.
Find Investments With A High Return
At the moment, the interest rates on savings accounts are down in the doldrums. You’re lucky if you can get an account with a two percent return. And even if you do, it’s unlikely that it is actually growing your money. Remember, the rate of inflation reduces the real amount of money available to you in the future. So if the interest rate is two percent, but inflation is 3 percent, you’re losing 1 percent per year.
Of course, for the vast majority of seniors, the situation is even worse than this. The main areas where you’ll be spending your money will be on things like health care. And these prices are rising faster than the prices of other goods and services in the economy. That’s why it’s so important to choose a savings method, like a gold and silver IRA, that can’t be inflated away. Gold and silver tend to retain their value, relative to goods, over the long term. And so, despite short-term fluctuations, they actually make a good investment for retirees.
Get Minor Home Repairs Out Of The Way
The best time to do repairs and sort out your home is when you’ve got a significant income stream. You never quite know how large your retirement plan will end up being. So it’s always best to get home repairs sorted as soon as possible. Remember, doing home repairs today will make it easier to sell your home if you decide to move upon retirement. Take a look at your home and ask yourself whether you’d buy it if you were a buyer. Put yourself in the position of the customer and change anything that they wouldn’t like.
Supporting Children Beyond University
Most people coming to retirement age today grew up in a world will full youth employment. In the 1960s and 1970s, almost every young male had a job. Many retirees, however, didn’t bank on how the economy would change after the year 2000. Since then, youth unemployment rates have rocketed. In some African American communities, up to half of people under the age of 25 are out of work. That means that retirement age parents often have to support their children well into their twenties. The Guardian has an excellent article for parents facing this issue.