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How to prepare for, and take control of, your retirement

Take control by understanding your situation.
Image: Shutterstock

As much as retirement often seems far away for many of us, especially younger individuals, it is important to prepare in advance to make sure you have a retirement income when the time comes.

More often, people only start to think about their retirement when they are five or ten years away from it. This is too late. Ultimately, individuals should start to think and get the ball rolling as soon as they start working. This will allow them to be better prepared to get the most out of their retirement.

Here are steps to help you prepare for and take control of your retirement:

Take control by understanding your situation

It is important to know where you spend your money and what resources you have. Start by making a list of expenses and debt payments. Then make a list of household income and any savings that you have.

Take control by asking what you can change

Review your expenses in detail to find out which expenses can be reduced, delayed or stopped.

Take control by planning

To take control, you need to work out how much you will need going forward each month. Also, it would be good to spend some time thinking about which expenses may increase, for example medical expenses.

Take control by being proactive

Once you understand your financial position, you can start planning for when and how you will reduce, delay or stop any non-essential expenses. Consider taking other necessary actions to ensure that your money stretches as far as possible and for as long as possible. A financial advisor can assist you with this step.

Stay on top of your finances by recording expenses

Now that you have a budget and a plan, you must compare your expenses to your budget every time you spend money and remember to check your plan every month and adjust if need be. By starting this good habit, you will be using this opportunity to put yourself in a better position to achieve what matters most to you. A financial advisor can help you with your financial plan.

Rita Cool, certified financial planner at Alexander Forbes.

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#6 Stop being an idiot by buying expensive cars on credit which you actually can’t afford in order to keep up with your friends. (The truth is they actually can’t afford it either.) Rather invest your savings in an index tracker/ ETF and reinvest the dividends. Over time you will build up a nice nest egg.

More Blah Blah Blah feel good advice. 1st GET OUT OF DEBT AND STOP USING CREDIT!!!! 2ND Q overpaying on all those insurances “in case” something happens!! Your insurance premiums should NOT GO UP if your cover is not! 3rd be wary of financial advisers! I have seen and taught about the excesses for 25 years. Here’s an example from the company who wrote this.
Alexander Forbes was embroiled in a bulking scandal after it was found that it joined the accounts of its clients together to earn better interest rates at banks. But, between 1996 and 2004, the benefit of the additional income this bulking earned was not passed on to its clients. Just google it. It’s kind of like celebrity’s that have a drug habit. They go to rehab and all is better??? Is it??

Another well researched and informative article. Typical “Must reach deadline” article, written Sunday evening, ready for monday morning deadline.

I wonder if certified is an academic qualification or a prerequisite to entering a nut – house

Really Rita Cool; as a certified financial planner you could do better than this article. Room for improvement; or should I say you can fill a grand palace for improvements.

Take control.

End of comments.

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