| If you have just started working and earning money, | | | | 2. Another aspect of pre-retirement planning is your |
| your parents telling you to save for your retirement will | | | | living cost. |
| sound ridiculous. After all you are young and you have | | | | This can be determined by figuring out your standard |
| the rest of your life to save money for retirement; | | | | and cost of living. Do you want to continue living in the |
| that's what you think. But listen to your parents; | | | | same big house as now? Remember as you grow old, |
| planning your retirement is not a waste of time. It is in | | | | maintaining a large house and its expenses become |
| fact the best way to utilize your time and save your | | | | cumbersome. You can either choose to live in a |
| money. Most people will brush off this 'save early' | | | | smaller house or live in an apartment in one of the |
| mantra, but those who are smart will recognize the | | | | many retirement villages that are springing up. These |
| need to do some pre-retirement planning. | | | | retirement villages are ideal for people who need |
| The concept of pre-retirement planning is easy. | | | | some help as they grow older. Some people would |
| You save money now because you won't be earning | | | | also like to live in a mobile home; this is perfect for |
| money later. Most people do not understand the | | | | those who were too busy working to travel. Once you |
| urgency of pre-retirement planning. These are the | | | | have retired you can do all the traveling you want. |
| same people who will be seen later in life living in a | | | | These decisions will help you understand how much |
| small low rent apartments and working at odd jobs to | | | | you need to save and what kind of finances you need |
| support themselves. Living this hard life when you are | | | | to maintain for your pre-retirement planning. |
| a senior is not pleasant. Avoid this situation by just | | | | 3. Pre-retirement planning requires dedication and |
| saving a little now and living comfortably later. | | | | responsibility towards your finances. |
| 1. Start of your pre-retirement planning by actually | | | | The best way to start off your plan is to write out the |
| formulating a plan. | | | | plan and formulate a budget. The next important step |
| Sit down with a pen and paper and note down | | | | after making the plan is to adhere by it. Start by putting |
| important details. Start with some financial information; | | | | small amounts of money every month in long-term |
| the most important being medical needs. When you | | | | savings funds. Get in touch with financial planners who |
| are old, you will need medical aid and this is expensive. | | | | will guide you in the best way and make sure your |
| You will need to save money to support your medical | | | | money and investments grow with you. Save small |
| expenses. But how much medical aid will you need | | | | sums of money. Most of the younger generation |
| and how much it would cost you are difficult to | | | | prefers to spend their money on things they want like |
| assess. Get in touch with a financial planner who will | | | | cars, clothes and country clubs. But you will only know |
| work out some average cost of health care that will | | | | the importance of this move when you are old and |
| help you determine how much you need to save. | | | | retired. |