Retirement planning and insurance

Retirement planning can be tricky, but there are steps you can take to ensure a safe, happy and fulfilling retirement for yourself and your family.

Read on to discover TSG’s tips for your retirement.

Consider Insurance

The most obvious challenge with retirement is that we no longer have an income, but expenses and the cost of living don’t care about that. They will keep coming at you thick and fast.

Disability insurance can provide what’s known as “income replacement” which is exactly what it sounds like: the insurance policy will pay out if are unable to work because of injury or illness.

Another way to secure a retirement income is to get something called an annuity. You put money into this instrument and it guarantees you income on a regular basis, no matter if the markets go up or down.

You can purchase an annuity at any time. It’s cheaper to set one up in advance, but they can kick in at very short notice if you need.

Life insurance can help protect dependents such as your spouse and children who rely on your income, in the case of your death. Family members who work need life insurance to cover large debts like mortgages, future obligations like college tuition, and living expenses. The stay at home members should have life insurance on their lives to cover the additional child care and other household expenses.

Another reason to invest in your own life insurance policy is that you may not have access to your company’s insurance plans after retiring. Make sure to check your options, coverages and policy details with your employer before leaving. If you no longer qualify, you will need your own policy.

Life insurance can also serve as an investment. Universal and Whole life policies have an investment component tied to the insurance. Any money put into them is invested and is also tax sheltered.

Create an emergency fund

You can also create an emergency fund to stockpile funds and other resources that will keep your family going in case something goes wrong. Plan the fund so that it can cover three to six months’ worth of expenses.

Having an emergency fund will help your family avoid taking on debt in a time of crisis.

Avoiding debt also means you avoid interest payments which can hinder your retirement saving efforts. Although emergencies can get in the way of retirement contributions, an emergency fund can help you bounce back quicker and easier.

Find something to do

Whether it’s pursuing a hobby, spending more time with your grand kids, starting a business or doing that one thing you’ve always wanted, make sure your mind is occupied. Staying mentally active helps delay aging and some of the ailments it brings. It will also reduce your risk of boredom, depression, end of life anxiety and even alcoholism.

If possible, keep your body active as well. Some light exercise, even a little bit of walking in the morning can have significant health benefits.

Retirement may also be a good time to make new friendships and connections as you take a step away from your current network and workplace. Find someone who shares your interests and go on an adventure together to make your time off fun and worthwhile.