While you are planning for your retirement you must keep in mind two factors: Personal planning as well as financial planning. Through personal planning, you can see how satisfied you will be with your retirement lifestyle whereas through financial planning you determine your budget for your retired life as it takes into account your income and expenses.
Personal Planning
Personal planning needs to be what it is that you want to do when you will be retired. When you are planning for your retired life, do sit down and think gravely about what you would like to do. How are you spending your life right now and what would it be that you want to change in the future?
What would it be that would enable you to attain satisfaction? Would you want to travel? Or buy a house? Or maybe volunteer for a local philanthropic organization? Or take up a hobby you never had the time to explore? Or even start your own business?
Once you have answered these questions along with other lifestyle questions and concerns, it will be easier to plan financially as your budget will also revolve around this. Your budget will be set in accordance with your goals.
Financial Planning
Once you retire your income sources will depend on government pensions as well as your investments. Hence, it will be necessary to determine whether or not you will be able to provide for your retirement lifestyle, the one you aim for.
There are several factors that you can consider while planning for your retirement. They are as follows:
- Set your goals:
It is good to write down a list with all your goals it in. you can set short, medium, and long term goals which will make the process easier.
- Evaluate your financial condition:
In order to achieve your goals, you must understand your financial position and whether or not you will be able to fulfill your desired retirement goals.
- Identify your sources of income:
You may have a variety of sources of income during your retirement and hence it would be beneficial to determine when to use which income. It would also be useful to take into account the after-tax benefit of each income.
- Understand healthcare issues:
As your age increases there is usually also an increase in the medical issues that you are facing. Your health deteriorates. For this, you would also have to look into a health insurance plan from an insurance company in Pakistan for yourself. There are several health insurance companies in Pakistan that will provide you with great coverage.
- Manage and monitor your income and assets:
As your sources of income will be changing it is essential to monitor and manage them. Only then you can plan. You need to also keep on monitoring in order to be aware of your situation as you need to fund your retirement. The worst-case scenario may require you to take up a part-time job as well. However, this will at least allow you to live your retired life confidently as well as peacefully.
