If you can hope to retire at the age of 60 then you will need to begin to prepare for this by saving now and spending less. Many people struggle to save, but this could mean a greater lifestyle shock when they retire and find that they have less to spend.
Professor in Financial Services Wade Pfau shared some tips on how to be financially prepared for retirement:
Less now for more later
By spending less now you can save faster and you will be better prepared to live with slightly less when you retire too.
Save those big pay outs
Making windfall payments work for you is another good way to help you retire earlier. Instead of splashing out on a boat when you sell your business, putting this money to work as investments for the future can help you to retire much earlier. While you won’t get a temporary boost in lifestyle quality, you will improve things for the long-term.
Commit to a savings plan
Committing to saving at an early stage can make all the difference between retiring early and comfortably, compared to retiring later on in life. Saving 15% of your income for 10 years can give you enough to retire on at 65 research by Hearts & Wallets suggested. Make a savings plan and stick to it.
