Retirement can be an exciting time in your life – after all, you’ve worked hard for years and now it’s your turn to relax, travel, and do all the things you’ve always wanted to do. However, retirement can also be a stressful time if you’re not financially prepared. That’s why it’s important to start saving for retirement as early as possible. In this blog post, we’ll cover some essential tips and tricks to help you achieve your retirement goals.
One of the most important things you can do to save for retirement is to plan ahead. Create a retirement plan that takes into account your current financial situation, your future goals, and your estimated retirement expenses. By having a solid plan in place, you’ll be better equipped to achieve your retirement goals. You’ll also be less likely to dip into your savings if you know that you’ve made a plan and are chipping away to achieve it.
One of the most effective ways to save for retirement is to pay yourself first. This means that you should set aside a portion of your income for retirement before paying any other bills or expenses. Ideally, you should save around 15% of your income for retirement – depending on how you are when you start. If you find it difficult to save this amount, start with a smaller percentage and gradually increase it over time.
Keep in mind that KiwiSaver is part of that 15% – so if you contribute 3% emplyee and 3% employer, you’re already 6% of the way there. Ideally, we recommend people use a combination of KiwiSaver and other investments for their retirement savings.
If you spend first, and save what is left at the end of the month, chances are there won’t be much left!
Having an emergency fund is essential to any financial plan, including your retirement savings plan. Emergencies can happen at any time and can be costly. By having an emergency fund, you’ll be better prepared to handle unexpected expenses without dipping into your retirement savings. Ideally, your emergency fund should cover 3 months of your living expenses.
Finally, it’s important to understand how to invest to acheive maximum growth. Use KiwiSaver to take advantage of employer and governement contributions. Make sure though that the fund you’re in is appropriate to your age and investment goals. If you’re not sure what fund you should be in – ask! You could be missing out on thousands of dollars over the years.
Saving for retirement can seem overwhelming, but by following these tips and tricks, you’ll be well on your way to achieving your retirement goals. Remember to plan for the future, pay yourself first, save and spend what is left after, have an emergency fund, and invest wisely. By doing these things, you’ll be setting yourself up for a financially secure retirement. Start today and watch your retirement savings grow! You can read more about how we help clients invest for the future through a combination of planning and sound investment choices.
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