Growing old in a healthy body, a serene environment and a comfortable home is an aspiration that we all have. Everyone wants their sunset years to be peaceful, happy and full of nothing but good health and cheers from their grandchildren. Others want to spend their sunset years travelling the world and enjoying the beauty in different parts of the globe that they never had the time to visit and see when they were pursuing their careers before retirement. The dreams usually come true for some people while they remain to be just dreams for others; based on how well you plan for your retirement.

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Retirement planning is a basic necessity in your financial planning since it influences the quality of life you will live once you are out of active employment. During your old age, you will need special care as you become weak and unable to do most of the daily activities on your own. You will also need special diet to boost your health and ensure you are at your best physical condition always. In addition, you will still need to pay your monthly utility bills and travel from one place to another. All these activities will require financial resources for them to be accomplished effectively; at an age when you are out of employment without but still want to maintain your pre-retirement lifestyle. When taking all the above factors into consideration, planning for your sunset years gains more meaning in order to avoid being a burden to the society after retirement.

When you begin your retirement planning process it is advisable to start with the end in mind. Having your life expectancy in mind will help you in planning under specific timelines which will then dictate how you budget for your retirement period. After establishing your life expectancy, you then need to consider your current age and your retirement age. In most countries, the retirement age ranges from 55 years to 65 years and also vary based on your profession. The difference between your retirement age and your current age gives you the most productive time you have to prepare for your retirement before it kicks in. On the other hand the difference between your life expectancy and your retirement age gives you the sunset age that you need to financially plan for starting today.

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Planning for your old age when you shall be out of employment is a game of numbers and the earlier you start acting on it the better you will be in the end.  For whichever option you chose to accumulate funds that you will need after retirement, starting early will always give you a deal than starting late when you are nearing retirement. Among the top retirement financial plans you can choose from are: savings, investments, pension schemes and social security plans. If you go for savings, the earlier you begin the more you will be able to save until you retire; with the same case applying for pensions and social security plans. For investments, the theory of compounding interest helps you to grow your wealth exponentially as you reinvest the returns from your retirement plan investments.

If you choose to go the savings way, there are several options to choose from including fixed deposit savings accounts with your local bank, normal savings account or you can decide to go for online savings plans that are backed up with gold bullion. All three options work perfectly well, but the additional benefits of the latter are that your savings will be secured from the currency fluctuations that might end up decreasing the real value of your savings during a recession.

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You can also choose to invest a portion of your current income to create cash cows that will be generating income for you during your old age. Among the different investment options you have include starting your own business that will grow into a sustainable enterprise that can run without your physical presence when you are old. Other options include investing in shares, fixed income assets, real estate, forex or the derivatives markets. Whichever option you choose, you must ensure it matches your risk appetite and at the same time it generates high returns enough to sustain your preferred lifestyle after retirement.

Pension schemes and government social security plans are other options for locking in financial security when you are planning for your retirement. For pension schemes, they can be organized under your employer or at an individual level; whereas for government social security plans, they are managed by the government with the participation of your employer. Both plans are based on an insurance model where by you pay monthly premiums that you will claim when you retire on a monthly basis to act as your retirement income.

Ultimately, everyone wants to be happy when they are old and retired from active employment. But the happiness comes at a cost; it is an expense that must be paid for. To secure that happiness, you need to start planning for your retirement as early as today using the tips provided above.