Retirement Planning: Ten Secrets to Retiring Early


Retirement Planning: Ten Secrets to Retiring EarlyIt may surprise you to learn that financial security in retirement does not just happen.

If you are to achieve the retirement of your dreams its going to take you becoming proactive and committed  to your retirement planning.

When it comes to retirement planning here are the facts…

Retirement Planning Facts

  • Fewer than 20% of Bahamians have any notion of what they will need to save for retirement.
  • Only 20 percent of Bahamians workers have access to or participate in any form of private pension plan.
  • The average Bahamian will spend at least 20 years in retirement.
  • More and more Bahamian are becoming dependent on the either the government, charity or family for support in retirement

Ten Secrets to Retiring Early

So if you are ready to take control of your retirement future here are Ten Secrets to Retiring Early…

1. Start Saving

While you may feel that you have a lot of time, let me assure you – you don’t!

So if you are not already saving for your retirement then you want to start as right away and once you start keep saving. Even if it is just a small amount you want to start where you are gradually increase your savings as you take control of your money.

Because the sooner you start saving, the more time your money has to grow and there is no better combination than time and money.

Whatever you do, start saving and no matter where you are it’s never too early or too late to start saving.

Retiring early, PS Ruby c 19102. Know your retirement needs

Retirement is not only expensive but it can last for a much as one third of your life time.  So it is important that you understand your retirement needs as they will be much different from the need you have during your working years.

While experts estimate that you will need about 75 percent of your pre-retirement income to maintain your standard of living in retirement. I am of the view that you should plan to have at 100 percent of your pre-retirement income available for retirement simply because of those special needs that you will have in retirement.

Therefore it is extremely important that you take charge of your financial future so that you can begin not only planning but investing your money for retirement.

Taking Control of Your Money eBook is great tool to help to begin putting your financial house in order.

3. Join your employer’s retirement plan

If you are amongst the fortunate few to have your employer offering a retirement plan then you want to find out how you can become eligible and once you are eligible, sign up and start contributing right away.

You also want to find out how much you would need to contribute in order to get your employer’s full contribution and how long you would need to stay in the plan to get that money by becoming fully vested.

You may not realize it now but joining your company’s pension plan not only makes it easy for you to save as there will be automatic salary deductions, but you will also get help saving as your employer most likely will match some portions of your contributions and over time this will make a big difference in the amount of money you will accumulate towards your retirement.

4. Learn about your employer’s pension plan

There are basically two types of pension plans and the difference can be significant so you want to learn what is covered by your employer’s plan as possible so that you understand not only how it works but how you will be affected by it.

There is usually a plan benefit booklet and individual benefit statement are prepared by the fund administrator on an annual basis, which will allow you to see what your benefits are worth and projected retirement benefits.

And before you change jobs, you want to find out how this will impact your retirement benefits and also be sure to find an employer that have a retirement plan.

5. Get Educated about investment

Saving alone is not going to get you to your financial goal. Therefore it is important that you educate yourself about investments as this is the key to growing your money. The type of investments that your is involved in will play an important roles in how much money you will at retirement.

So you want to know how your retirement savings is being invested. And while you may not have much of a choice you will have the opportunity to put your personal savings in different types of investments. Thus allowing you to diversify your investment to reduce risk and improve return.

Your investment mix will change over time as it is dependent on a number of factors including your age, goals, and financial circumstances so understanding basic investment principles will help achieve your retirement goals with minimal risk.

Retirement savings, Nest egg savings

6. Don’t touch your retirement savings

Like MC Hammer says “Don’t Touch It!” Once you start saving you will soon be surprised by how fast your money is growing but you must resist the temptation to touch it. Remember this money is for your retirement.

So if you change jobs, leave your savings invested in your current retirement plan but don’t touch it!

7. Ask your employer to start a plan

If your employer doesn’t offer a retirement plan, then you should suggest that they start one as it is not only a great idea for you but will benefit all your fellow employees. 

8. Get Your Own Individual Retirement Account

You really have no excuse for not saving for your retirement even if your employer does not have a pension plan as you can start your own Individual Retirement Account. An IRA is  account that you control and allows you to put aside money for your retirement.

9. Find out about your National Insurance Retirement benefits

National Insurance Retirement benefits are available to all gainfully employed persons within the Bahamas who are making contributions to National Insurance through their employer deductions.

There is also an Old Age Non Contributory Pension for those who do not qualify.

So you want to find out exactly where you stand when it comes to your national Insurance benefits.  

10. Ask Questions

While I have tried to point you in the right direction you need a lot more information about what you need to do in order to plan for your retirement. 

Here are just 5 Early Retirement Questions You Must Answer Before Retirement

So go ahead and talk to your employer, your union representative and your financial adviser.  Ask questions and make sure you understand the answers. Get practical advice and act now.

I also have some good news for you. You do not have to plan your retirement alone because right now, you can get help when you enroll today in Retirement Secret Exposed 90 Day Coaching Program which  gives you the guidance you need to retiring early .

What’s more You can save 25% during our introductory offer

But you’ll have to hurry. Because time is limited. Not only do you not want to waste another second worried about living your retirement on someone else’s terms–but this introductory offer ends soon.

“Retirement has killed more people than hard work ever will”

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Glenn S. Ferguson