Like it or not, as you grow older there comes a time when you have to retire from employment and slow down. It is however, wise for you to have a sound financial plan in place to cater for you after retirement.
Planning ahead of time is advisable, which means that you should start making financial plans while you are still in employment and before you reach retirement age.
Finances that are not planned for end up being wasted which is absurd especially if an individual has already retired. You can plan for finances for senior citizens in the following ways.
1. Start to save now
Saving for the future now is a good start off point. Find out what your social security covers, this will help you to be prepared well for any extra expenses. You should also find out how much you will have pension and other returns on investments.
2. Open up a savings account
Put aside a certain amount of money each month so that by the time you retire you have have saved enough money that can cater for your needs as a senior. Do not be tempted to take out your IRA money until you are ready to retire. Allow your IRA money to earn interest, and only take it out after you have retired.
3. Choose your retirement age
It is crucial that you choose a retirement age, but it is entirely up to you to decide when you think that you are due for retirement. There are many individuals who continue to work as senior citizens. It is important that you choose a retirement age and plan well for it financially.
4. Look for other streams of income
When you start to approach retirement age, you should start thinking about how to earn money even after retirement. A second job as a consultant after retirement is a good idea.
A home business in an area that you like is also another way to plan financially after retirement. You can also sell off your house and buy a smaller one, the proceeds from the sale will help you in the long run.
5. Contribute generously to your 401(k) retirement plan
You can ask you employer to help you match your contributions so that while you are still employed you contribute a size-able amount of money. After retirement, it is joyous to have a hefty 401(k) which will keep you going after retirement.
6. Shop around for insurance coverage
As you approach retirement age, it is wise for you to start considering getting life insurance coverage that will cater for your needs after retirement especially in the area of health. Get quotes from various insurance companies and choose the best insurance coverage. You can even pay for it if you have the finances just to be on the safe side.