If you are aged in your 20s, 30s, or even your 40s, the idea of retiring might be something which seems like some distant event, but if you ask anyone who is close to retirement age, they will tell that it comes around a lot sooner than you ever expect. Worse than that, if you have not done any financial planning to maximise your retirement income, then you could find yourself in a worrisome situation with regards to your finances after you retire.
This can lead to some undesirable realities which can include having to continue working, relying on family for hand-outs, having to claim state benefits, and worst of all, it means that rather than enjoying your retirement, which everyone should be able to do, it is blighted by you worrying how to p[ay bills and possibly even how you can afford to feed yourself, and your spouse, if you are married.
Of course, none of these nightmare scenarios need to arise if you plan properly for your retirement. There are lots of financial planning services available where they will advise you on the many ways in which you can maximise your retirement income. To help you on your way to that highly desirable situation, here are just three simple ideas that will allow you to boost your retirement savings.
Start Planning and Saving for Your Retirement as Early as Possible
This is probably not only the best piece of advice you will hear in relation to retirement saving, but it is also the easiest to implement, but regrettably, it is also the one action that most people ignore. In simple terms, it does not take a financial expert to work out the logic that the sooner you start to save, the more money you are going to have at a given point in your future, i.e. your retirement day.
One of the reasons for this is something called compound interest. In simple terms if you have $1000 that earns 5% annual interest, you now have $1050, and if that then gains 5% interest the new total is $1102.35 and so on. To give you some idea of how this can add up, that same $1,000 would be multiplied 6 times over in 40 year period if you did nothing else. More likely you would add additional deposits increasing the interest earned and eventually it totalling a huge amount.
Seek Ways To Reduce Your Outgoings
Every person and every family works to a budget but unfortunately very few of them ever sit down in order to establish ways of making their budget work them more than it is. One way of it doing so is by reducing the outgoings you have in order to invest what you save. This can be as simple as spending less on unnecessary items but can also be achieved by seeking out better deals on utilities and insurance policies, and by consolidating credit and loans into one smaller payment.
Diversify Your Investments
As well as your super, you should be seeking other ways in which you can invest for your future, and in particular your retirement. A financial planning service will be able to advise you on what are the most suitable based on your current financial situation and with regards to what level of retirement income you wish to have. Examples of investment opportunities include stocks and shares, property, equities, managed funds, term deposits, and commodities, such as gold.