7 Golden Rules of Financial Planning For Retirement

The retirement period is an inevitable time in everyone’s life. Your retirement could be the best period of your life or the opposite. What makes the difference is in your level of planning. Besides, if your heart skips a beat every time you hear the word retirement, it points to the fact that you do not have a solid plan. 

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Indeed, the retirement period marks the commencement of a golden phase in one’s life. It is time you can finally cross your legs, sit back, relax, and enjoy the fruit of your labor with little responsibility. Your comfort during this period, however, is a factor of your preparation.

For anyone to enjoy their golden years in peace, planning is indispensable, especially financial planning. Without a doubt, if you start planning for retirement at an early age, there is a high possibility you will not have issues with finances. 

We have compiled seven indispensable golden rules to help you prepare for the golden years ahead. 

Estimate Your Post-Retirement Expenses

The majority of your retirement plan hinges on your finance. An excellent way to start is to estimate what you need to save. Consider the nature of your lifestyle and what you will likely spend on after retirement: the vacations you want to take and the luxuries you want.

An idea of this will give you a rough estimate of what your expenses will look like during retirement. It will provide you with an estimate of what you need to fulfill your dream during retirement. Never forget to put factors like slow economic growth, recessions, and inflammation into consideration. It will guard against surprises.

With all these projected expenses, you can arrive at an assessment of what to save. A good retirement company like Silvers Fan Retirement Plan can guide you towards creating a viable estimate if you are lost.  

Prioritize Paying Your Debts

Your retirement period is the wrong time to be servicing debts. Make sure you do not dodge paying off all your debts as it will come back to haunt you. The more you leave debts unpaid, the more interest it accrues, which further complicates the matter for you.

Try and make a conscious effort to get your student loan credits, credit card debts, etc., of the way. With debts off the way, you can focus on establishing a solid financial plan for your retirement.

As you plan towards retirement, try and reduce your borrowing habits. According to a study, Americans have a total of $4 trillion in credit card debt. Sadly, such debts have high interest that can be crippling. The longer it takes to pay the debt, the more the interest that will accrue. 

Try and have a debt repayment plan. Let go of some of your wants and focus on your needs. Reduce your monthly expenses and direct a massive amount of your revenue to take care of your debt. Consider this a sacrifice for the greater good.

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Get a Suitable Health Insurance

Many people will give anything to be forever young. It is not surprising as old age comes with its unique packages, and one of them is health issues. This is expected as the various body organs and tissues get tired and weak from years of hard work.

This means that if you are not prepared, medical bills can wreck your retirement savings. With this, do not prepare for your finances alone when you are planning for retirement. Have provisions for your health as well.

Health insurance during retirement is a good choice you can consider. You can consider the varieties of options available to consider the ones that suit you. It will go a long way in guarding against unforeseen contingencies during retirement.

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Start Building Your Retirement Funds Asap

After estimating what you will need, and taking care of your debt, make sure to start the hard work – saving. Saving is hard work, and it requires a lot of discipline. The early you start saving, the better.

This will be an excellent way to introduce the good old 50/30/20 rule. Developed by a financial expert, Elizabeth Warren, this is a simple budgeting plan that helps structure out the income. Here is a breakdown of what the rule assumes.

  • You direct 50% of your income to needs like utilities, debts, mortgage, rent, groceries, feeding, etc.
  • From your income, 30% goes to wants, like shopping, vacation, and other things that you don’t actually need.
  • The final 20% goes to saving.

This is a basic rule that can help you manage your income and savings. 

Do Not Ignore Taxes

Sadly, taxes remain with us and are going nowhere anytime soon. Even if taxes change, you will still have to pay. Taxes apply to every aspect of your finances like income, allowances, investments, gifts, assets, etc.

Ignoring taxes will not make it go away. Instead, work with a licensed tax professional to help handle your taxes. Take advantage of tax investments and file your taxes accordingly. Make sure to maximize exemptions and all deductions that apply to you. Do not procrastinate paying your tax as it comes with severe penalties as well.

Wisely Choose Your Investment

It is essential to consider other sources of income during retirement. There are many investment opportunities that seniors can make use of, during retirement.  Make sure to measure your risk profile and select a product that can give you the right dividends.

You do not need huge investments; you only need the right one. You need a wise investment with minimal risk. As little as $100 invested wisely is better than dedicating thousands of dollars in a bad investment.

Consider options like bonds, mutual funds, etc. There are ‘Guaranteed Pension Plans’ as well. With this, you can pay small and regular premiums that will serve you during your golden years. 

Regularly Review Your Investment

We don’t want to be a prophet of doom, neither are we saying you should anticipate the worst. It is, however, a good idea to regularly review and analyze your portfolio. There are unforeseen contingencies that might negatively affect your investment. 

Market conditions might negatively hit your portfolio. With this, make it a habit to review your portfolio regularly. You might desire to maintain your investment in debt, equity, and cash with the ratio of 2:3:5. Be sure to stick to it whenever you review your portfolio, keep tabs on this regularly, and rebalance when necessary.


We all look forward to peace and enjoyment in our golden years. These, however, do not come by luck. You have to be deliberate about it.

With these seven rules, you can set plans in motion and prepare for the life you desire post-retirement.


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Shina Pal
Shina Pal
Shina holds an engineering degree from a reputed college.Skilled in Public Relations, Project Management, Business Management, Negotiation and besides these her interest in writing for various technology platforms. She is an avid follower of Technology and passionate about the latest technologies.