How to Start Planning for Retirement

Even if you have only recently left university and entered the work force, it's beneficial to look forward to start planning for a sound financial future in your golden years. When getting your finances in order, you'll want to start by forecasting what your budget will look like after you have retired. Bear in mind that your mortgage may be paid off by then, and factor in additional travel expenses and medical bills. Once you have worked out a basic budget, you can then start structuring your assets in a favourable way to prepare for the future. 

Set up Retirement Accounts

Your employer may be contributing to a retirement fund. Contact your current and past employers to request an up-to-date statement regarding your pension plan, so that you can start factoring this into your retirement planning. You can also set up a special savings account to contribute to each month to supplement the expected state and private pensions that you will receive. If you start to contribute £150 each month at the age of 30, you can give yourself an additional income of £10,000 per year.

Visit a Financial Planner

Visiting a professional financial planner can help jumpstart your plan. It's recommended to have a full investment plan completed every five years on the road to retirement. Experts at firms such as Lombard Odier can go over your current financial situation with you and make recommendations that will help you invest your money wisely. Financial planners can also help you prepare for the cost of long-term insurance and protecting your estate.

Diversify your Investments

One of the keys to having a reliable source of income as you get older is to invest your money in different areas. Having a main savings account is a great start, but it's also wise to invest in mutual funds and other investment strategies. With the help of your financial planner from a trusted firm such as Lombard Odier, you can work out which types of investment strategies will be most beneficial for your particular case.

Start Estate Planning Early

Procrastinating on estate planning can be a grave mistake, causing stress after you have already retired. You can start preparing for the distribution of your assets by creating a will, assigning a healthcare surrogate, assigning guardianship for your children, and creating trusts. These documents should be updated every two years or whenever you have a major change in circumstances, such as marriage, divorce or birth of a child. By taking care of estate planning early, you won't be hit by lengthy legal disputes or extensive paperwork down the road.

Taking the time to lay the foundation for your retirement early on will pay off as you grow older, so that you can enjoy this time of your life without worrying about financial issues.

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