How my Dad’s early retirement impacted the WHOLE family

When I was 22, my father – a first class officer in the Navy – retired. He didn’t consult my Mum, and he certainly didn’t mention it to me or Sarah (my Sister). And why should he? It’s his life right?

But that’s the thing, we are a family and the actions of one impact on the others – regardless. I took a job on at College, Mum had to work extra and so did Sarah.

Start saving and start it soon

Savings is a very worthwhile virtue. So we teach the kids the importance of savings from an early age. If you have not started, then start today. Be it for your retirement or for anything else, it will help you at the end. But it is very important to keep at it. Do not be disappointed if you have not been able to save as much as you wished to after a certain period of time.

What are your needs post retirement?

Once your steady flow of money stop’s after retirement, you will find it a bit difficult to manage the expenses. But the demands of a retired life are different from that of a working life. Research shows that while an average wage earner needs about 70% of their income after retirement, a person with a lower income is most likely to need about 90%. Though it sounds bleak and disappointing, early planning can make the situation simpler.

Will framing and estate planning

As soon as you have your first child, consult a solicitor to start working on creating a will. Also, remember that careful estate planning can help you safeguard your wealth, and secure your family’s future too. This is important because you’re likely to want the fruits of your labour to pass down to your kin. So, consider browsing through The Right Will Blog to gain an understanding of the need for estate planning and will framing.
 

Invest in the retirement plans offered by the employer

Many employers offer a retirement plan. It is wise to invest in such plans. It will lower your taxes, your company will contribute some and since the deductions are made directly from the salary, you do not have to worry about having to put in the money.

Go for the pension plans

Find out if your employer has any kind of pension plan. Enquire about its terms and conditions and what will happen if you change jobs. These are extremely beneficial because you will be saving a small sum every month. You might even be entitled to some benefits from your spouse’s plan.

Invest on your own

Investments are the only way you can increase your income. They are often based on how the economy performs and so a certain amount of market risks are always involved. However, a prudent decision always pays off. You might even buy a home as the price of houses is always on the rise. There are a number of equity release schemes that might come in handy.