The Ostrich Option is often the only option that you have in hand while saving for your retirement years. An Ostrich hides its head in the sand under stressful conditions; you may act like one under a financial crisis. Although it seems to be a nice option apparently, you can’t save your finances from getting off track as you retire.
It’s always advisable that instead of getting your head buried on the sand, you may try looking for some quality savings options. Complete financial darkness will grasp you if you don’t plan for the future right now. Planning for your retirement could mean a big financial burden right now, but you must contribute towards creating a fund that ensures a sound financial future. You don’t have to set aside a huge portion of your income to be used for your retirement planning.
Mentioned below are a few steps to an effective retirement plan:
Step 1: Do you wish to follow any preferred lifestyle post-retirement? For instance, would you like to dine out more frequently? Do you have a list of tourist hotspots that you’d like to visit every year? Have you planned to go to any overseas destination with your loved ones? Will you choose to continue using a laptop and a smart-phone?
Step 2: Have you been able to ascertain the cost of maintaining such a lifestyle on a weekly or yearly basis? You’ll need to achieve an annual income worth over $40,000 if you wish to lead a comfortable life ahead. You may need to save around $60,000 per year if you’re married.
Step 3: Make good use of any online retirement savings calculator in determining the amount of money that you need to accumulate for maintaining your preferred lifestyle. You must also gain an insight into setting a portion of your non-super savings without really hampering your current financial situation.
Step 4: The amount of savings and superannuation that you have needs to be worked out very soon.
Step 5: You must determine the amount of savings and super that you’ll enjoy post-retirement. A few online calculators will guide you through an even path if you don’t try too many things at once.
Step 6: Run your eyes through some expert advice if you witness a widening gap between what you’re likely to achieve from your actual savings and what you intend to save.
You’re bound to catch up a number of retirement articles while surfing the internet but not all of them are able to throw much light on your savings both super as well as non-super. However, you’ll gain a true insight into all the factors that contribute towards a financially secured future. You’ll acquire knowledge of different retirement scenarios after taking a range of retirement ages, returns on investments, and various income levels into account. This, in turn, will keep you more equipped to deal with the changing financial situation as you grow older.