Four top tips for those who are coming closer to retirement

Whether you are close to retirement or a long way off, these top tips will help you plan and prepare for your big day.

Tip 1: Evaluate your expenses

Take some time to list your monthly expenses. Look at each expense to see what can be brought down – like possibly downgrading your cellphone contract, trading in your car for a smaller model or buying a smaller home that needs less maintenance. Start working on making these changes in the lead-up to retirement. It is also important to start paying off clothing accounts and credit card debt so that when you retire you are debt free. If you start early, you can pay small extra amounts over a longer period of time. This will make it easier for you to get debt free.

Tip 2: Evaluate your medical aid plan and insurance

Are you paying too much for insurance? Is your medical aid plan suited to the health conditions you have? When it comes to medical aids, sometimes there are plans that are cheaper and better suited to your unique circumstances. A health broker or consultant can help you with this. They know the medical aids and the plans better than most. With this experience, they can assess your personal needs and tell you if you are on the plan that best meets those needs. When it comes to your insurance – car, household, building (structural), life – you need to make sure you aren’t over- or under-insured. A financial planner can work with you to make sure your policies cover only what you need covered.

Tip 3: Open and regularly review a life file

It is important to make sure you have all your most important documents in one safe place. Start a file or open a folder on your computer for these documents. Set a time of year, for example every January, to look through your file to make sure everything is still up to date – like your beneficiary nomination forms. Don’t forget to tell your loved ones about your life file.

Tip 4: Find out if you are on track to retire comfortably

A financial adviser can tell you if you are on track for retirement or if you are falling short. If you don’t have an adviser, you can use My Retirement Picture to help you assess your situation.

Not on track?

Think of ways to save more money for retirement. Consider:

My Retirement Picture

On track for retirement?

Keep reviewing your finances regularly to stay on track working later if your employer allows it thinking of small business ideas to bring in extra money putting more money into your retirement fund

Speak to your HR department to find out if you can increase your contribution rate or make additional contributions to the retirement fund.

Key takeaway: Time is a valuable thing. If you have enough time, you can make positive changes that are not too demanding on your take-home pay. The sooner you start, the sooner you will get on track. It is much easier to stay on track than scrambling at the last minute. No one needs that kind of pressure as they reach the end of their working career.