Retirement Phases And Budgets

Retirement Phases And Budgets

Retirement phase can be delightful if you are financially and physically fit. Retirement phase can be divided into a few smaller stages that come with different changes and challenges. This article focuses on these different phases.

1) Pre-Retirement: Pre-retirement is the time before the actual retirement. It is the time when you are still working but retirement is close enough. At this moment you have an almost clear picture of your investments, life after retirement and income and expenses after retirement. It is the right time to analyze your investments and evaluate the possible sources of your income post-retirement and to invest in good short-term investments. There can be many options to choose from like investing in cryptocurrency trading using various online robots. Refer this link to know more about them. This is the phase where you still have to go through all of your routine expenses but also save for the days when you won’t be having your job.

2) Early Retirement: This is the phase when you are retired; this phase can bring in a lot of changes in your daily routine and your income. You will not have your regular monthly salary but you can still have other regular incomes like the pension or income from other side jobs. This is the time when you need to plan your budget for your incomes and expenses and see if there are any other possibilities of regular income. Also, focus on your life and health insurance to support medical expenses. You can also choose to claim social welfare benefits at this moment.

3) Middle Retirement: In the early retirement phase many choose to utilize the time traveling. While in middle retirement phase many choose to take it little slower considering the health restrictions. This brings down the travel expenses saving more amounts every month. Also, by this time your children are well settled in their life and are financially independent. This is the right time to plan your will and sort the nominees and power of attorneys in case you are not able to manage your finances.

4) Late Retirement: This phase might bring in a lot of medical expenses, hence focusing on your insurance and other incomes to support it can be crucial at this moment. Also, at this moment you can choose you to reap the benefits of the investments you did your whole life. Apart from medical expenses, the other expenses might stay similar to the middle retirement phase where you choose to have less frequent travels and focusing on friends and family. This is the right time to make sure all your financial matters are sorted, like the will, debts if any, nominees for all your assets etc.