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You can’t work all your life. Your energy, stamina, and patience run out as you grow.

When you are old, you don’t want to tire yourself out thinking about the stress of your professional life.

Instead, you want to bask yourself in nature, leisure, or doing anything and everything you couldn't do.

Therefore, the earlier you plan, the better your finances will be, and the sooner you can retire!

Yes, a secured credit card in Canada can help you manage your finances, but you shouldn’t only rely on that.

You need to think through everything to come up with the perfect strategies. So, here are some effective tips to get the best out of your retirement.

Tips For 10 to 13 Years Before Retirement

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10 to 15 years is a long span to work things in your favor.

Even if you make mistakes for most of the period, you still have time to start your retirement planning.

So, here are some suggestions for creating a long-term retirement plan:

1.  Create A Retirement-Friendly Budget!

You need to estimate your finances (earnings, spending, savings) to figure out what you need to do to fill up your retirement account.

So, the best tip is to use a retirement budget calculator to create a budget that can help you achieve your retirement goal.

2.  Estimate Your Retirement Finances!

If you want your budget to work all the way till your retirement date, you need to keep updating it continuously.

• The reason is you won’t be earning as much in the early phase of your career as you would in your prime time.
• Similarly, as you retire, your finances will also drop to a minimum unless you have several smart investment plans.

So, estimating retirement income is a necessary step. Here’s how you calculate your retirement income:

3.  Decide When You Want To Retire!

Considering you are planning your retirement before 10 to 13 years, you still have time to put effort and energy towards your financial goals and resolutions.

So, before creating the plan and budget or curating any strategy, you should decide when you want to retire.

Then, it can help you create a realistic budget and saving tactics.

Tips For 7 to 9 Years Before Retirement

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There’s hardly anyone on the planet who doesn’t want to be better at living life.

Of course, we are talking financially, personally, and professionally.

However, not everyone tries to achieve their goals and live their dream to the fullest.

So, to ensure you are not among the category regretting their decisions in retirement, here are some suggestions to follow:

1.  Catch-Up With Your Tax Incentives!

You might not know, but pre-retirees can get their hands on several perks that can help them plan for a better retirement.

• You can open a (401) account that has a higher contribution limit
• Or, you can go with an IRA account that offers more saving-friendly discounts and bonuses.

To receive all the benefits from a retirement account, you must be 50 years old.

However, as most people retire in their late 50s or early 60s, we think this is a reasonable period to catch up with your tax incentives.

Related Article: Money Goals For Your 20s, 30s, 40s, 50s, & 60s!

2.  Update Your Investment Portfolio

You must have made a few little investments as you gain experience in your work and financial management.

But is it really paying off?

Or should you reconsider what you're doing and renew your investment portfolio?

So if you ask us, the moment to make your choice is right now. Considering that you still have at least 7 years to get your finances in order.

3.  Delay Your SS Payments

Do you live in a state that provides social security benefits to citizens?

Well, delaying it for a certain period before your retirement can help you increase the pension after your retirement.

Surely, you might want to utilize every financial aid you can while you’re struggling to hit the 50 age mark.

But increasing your passive income and cashing out your skills might greatly help you earn some extra bucks.

Tips For 3 to 6 Years Before Retirement

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Okay, now things are getting chaotic.

You only have 3 to 5 or a maximum of 6 years to plan your retirement like a pro.

However, you don’t need to panic thinking as you might end up making bad decisions for your future.

You can still make many financial changes to help your case. Here you go:

1.  Apply For A Retirement Compensation!

If you have been doing your job with excellence all your life, surely, there might be a company policy to reward employees like you.

Talk to your employer about the pension or any retirement compensation and get the best benefit.

2.  Find A Government Pension Plan

Yes, you can find certain government programs that help people nearing their retirement age.

Check the official retirement pension arrangement guide or ask your financial advisor to help you look into the details.

3.  Do The Math

No, no, not the one you learned in your primary age! :p

But the one that can help you calculate every finance you need for a better retirement.

• Choose your retirement age and calculate how many years you still have to make things work.
• Find your pre-retirement and post-retirement income to create a realistic budget.
• List down all the compensation, pension, or extra money you might receive from your company, government, or family.

Yes, you should also add the finances you might get from your parents in inheritance or any loan you once gave to your friend.

The key is to do the math from a retirement point of view so you can have a true image of what you have and what you should have in the coming years.

Tips For 1 Year Before Retirement

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It’s almost time!

You only have one year left before the age you decide to retire. Is there still something you should do with your finances?

Yes, be smart with spending and savings!

Here’s what you need to do before one year of retirement:

1.  Learn About Medicare Benefits!

Say you are 63 years old.

Sadly, no matter how good you imagine your health, you might still have to deal with quite a few uncertainties.

• Sign up with SSA for medicare benefits,
• Look for other programs that offer free healthcare services to retirees.

You should also learn about the healthcare advantages you can get from your company.

2.  Clear Your Mortgage Bill!

Yes, you read that right.

Paying for the loan might become hard in your retirement phase as you may not have enough finances to do so.

You can think about refinancing your mortgage or talk to the lender about better loan payment plans.

3.  Recheck Your Flexible Savings Account!

Do you have an FSA?

If yes, then it is advisable to check the amount and the account so you don’t lose any money.

Collaborate the details with your employer on the payrolls, healthcare, and other benefits you can get from the FSA.

4.  Plan Your Time After Retirement!

This may seem like an unnecessary step, but it’s equally important!

Especially if you’re a workaholic, spending time in leisure might be too hard for you.

• Plan what you will do with your money when you retire,
• Decide what hobbies you’ll adopt,
• And what investment strategies will you continue?

The last one is crucial as it will give you time to rebalance your portfolio before it’s too late.

Bottom Line

People tend to retire early to enjoy the rest of their days or years chilling, relaxing, and just absorbing the feeling of being alive.

Do you want to be among those? We got you!

The right time to start your retirement planning is now.

Yes, even if you have 3, 5, 6, 9, 10, or 12 years before your retirement age, you can always work hard to achieve your goals no matter where you stand now.

Wondering how to do that? Give this guide a read, and you’ll find all your answers.