Friday, 19 July 2019 | 04:25 WIB

The Financial Things You Need to Prepare before Retiring

The Financial Things You Need to Prepare before Retiring (investopedia)

JAKARTA, NETRALNEWS.COM - It's fair to say that reaching the age of 50 without retirement savings is not an ideal financial situation at all. However, it is important to realize that at the age of 50, there is still time to build a large enough pot for your retirement.

The following are some of the ways you can do to address this situation.

Delay retirement

The first thing you will do if you don't have savings at the age of 50 is to postpone retirement. While many people like to retire around the age of 55, I will delay up to 58 years, because this will give me a few extra years to collect some savings. Within that range, many things can be achieved financially.

Maximize income

Next, you will start maximizing income. The first thing you can do in this case is to ask for a raise (if possible) and if you get a raise, the extra money will be channeled into savings. However, if you don't get a salary increase, it won't be the end of the world, because you can take on some extra freelance work outside of my regular job.

Stop unneccessary spending

Of course, you are asked to look back on spending costs so far to save more. You should start analyzing bank transfer reports and find out what you can do if you live without it. What's not important like subscription television will be cut off. In addition, it also ensures that there are also planned cost savings for standard requirements such as electricity and gas, insurance, and cellphones.

Build an income generating portfolio

Finally, try to invest your savings in various assets that generate diverse income to build a small stream of retirement income.

Try investing in assets such as FTSE 100 dividend shares, which pay shareholders regular cash payments from profits. For example, an investment of 2,000 pounds in Royal Dutch Shell can pay you around 120 pounds per year only in the form of dividends.

You can also invest some of your money in what is known as 'real assets.' These are physical assets such as retired villages and storage warehouses, which generate regular cash flows, pay solid dividends, and are quite protected from economic downturns.

Meanwhile, also save a little cash available for emergencies. You should not want too much savings to "sit" in a bank account or cash.

After 50 years without retirement savings it can be a little scary. But if you postpone retirement until age 58, be assured of a reasonable retirement savings plan.

Take action quickly, and save your retirement savings plan as soon as possible, and you might be able to save your retirement after all, as reported by Motley Fool.