Body Fiscal fitness is crucial for a person´s survival due to the ever-increasing cost of living. Attaining fiscal fitness is extremely important for people in their fifties as they prepare themselves financially to spend their lives after retirement in comfort. Failing to develop saving habits right from the time you got your first paycheck may drain your finances. It is very obvious why you need to start saving from the very first day. Longevity is on the rise, thanks to advanced medical science and your retirement life may be a lot more than your work life. In addition, the cost of living grows by the day and chances are that the cost of living will double over the years. You need to therefore sock away every dollar you can so that you don´t have to compromise heavily post retirement.
If you are one of those many people who failed to save wisely in the early period of their work life, don´t panic. You may have spent most of your money due to job loss, death in the family, divorce, disability or any other reason. Now is the time to take action and raise the funds to head towards a comfy retirement. While it is expected logically to put aside ten percent of your income every month when you begin to work, those in their fifties and failed to save must start saving at least twenty percent or more. Then there are “catch-up contributions´ that enable fifty plus employees to contribute a lot more than their younger counterparts to 401(k) and IRA annually. Check with your financial advisor to see how you can these to your advantage.
Another way to beat retirement woes is to postpone retirement. Extended retirements not only help you to save more but also take care of your immediate financial retirements. Besides, companies need senior employees who can play a pivotal role in shaping their company with their experience and knowledge. Most baby boomers choose to work as long they as they are physically fit. As a result, many people continue to work and share their expertise until they hit late seventies. For many, this is the time to try a new career, something that they always wanted to pursue. Part time work opportunities are readily available today and if you are an expert in your chosen field, your previous company may love to have you in their organization as a part time consultant. Many people have also managed to transform their hobbies into a booming business post retirement. It´s the joy of reinventing yourself that keeps you going when you are in your golden years.
If you are presently living in a city that´s known for its high cost of living, you may consider affordable alternatives to relocate after retirement. This will automatically boost your financial position and ensure fiscal fitness during old age. Relocation is a great choice for people who have built sufficient equity in their home but lack the savings to sustain retirement costs.
Diligent planning takes away the financial burden and allows you to enjoy a truly fulfilling life in your golden years.
© 2008 Anna D. Banks, GCDF
Do you have any questions about career development or lifestyle changes for Baby Boomers, which you think others, like you, would want to know the answers? Email your questions to me at Anna@AnnaBanks.com.