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How to Save Money for Retirement?

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Your hope for a financially secure retirement won’t actualize itself miraculously. You need to create a solid nest egg to support you and the family in retirement years.

If you haven’t started saving money for retirement, here are some recommended ways.

  • Join Retirement Plan at Work:

It is the safest and easiest way to start saving money for retirement. The money is deducted from the paycheck automatically.

  • Get Long Term Insurance:

While paying insurance premiums are sometimes tough, especially if there is unemployment or cost-cutting, it is one of the safest ways to build a solid financial corpus.

Take insurance plans for long-term, like 20 or 30 years. By the time, the plans mature you’re already on your way to retirement years. The entire amount received can be safely invested for a couple of more years while you sit back and enjoy the interests. You can visit Suncorp Super for more investment options.

  • Invest in Stocks:

Stock markets and equities are a risky business if you don’t know what you’re getting into. On the other hand, simply putting aside some money every month won’t cut it either because you aren’t allowing the money to grow.

Grow your money by investing in stocks. You can then choose to buy an income annuity which pays a monthly benefit from the remaining years of your life. Do note that the early you buy the income annuity is better because the payout amount is less.

  • Get a Health Plan:

Your health doesn’t come with a guarantee card. Fall sick once with a serious health issue and almost all of your retirement savings will be wiped out. Get a health insurance if you want to avoid such a calamity.

Do take a cover which provides the best possible options.

  • Set Realistic Goals

This is a very important factor. Set financial goals which are realistic. Promise yourself to set aside a portion of paycheck every month into a separate savings account. Cut down on household expenses. Trim other expenses wherever possible. Set a target to keep aside a particular sum every year.

Takeaway

You’re young now and you won’t probably take retirement talks seriously but remember, you will get old one day and you won’t be able to work as you’re working now.

How will you manage expenses then? Think hard and fast; start saving for retirement now.

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About Chitraparna

+Chitraparna Sinha is the founder of SocialVani where she is building a useful resource for small business entrepreneurs and assisting clients in start-up blogging and building eCommerce ventures.

Comments

  1. Hi, great read.. informative content, I will choose long term insurance . Its better for all time.
    Thanks

  2. thanks for the post

  3. thanks for the post, the ending is a bit catchy and made me think about my future, the article could be better if you could go a little bit indepth about them, anyways doesnt matter, a nice one

    Thank You

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