Retirement, for many, is an enjoyable time of life where you can focus on your hobbies or other ventures you might not have been able to do in your working years. Making sure that we are financially secure once this time arrives involves planning. Many people, especially in the in this day and age, are unsure of how they are going to make that happen. Below are some of the steps you can follow to ensure that you end up with a financially secure retirement.

Keep a healthy savings account

It is always important to have enough cash to provide a windfall when times are tough, or for the unexpected. When you are in the labour force, it is advisable to keep between 3 to 6 months worth of wages in cash. When you retire, it’s a different matter entirely. It is advisable to keep between 12 to 18 months worth of wages in cash, because your living expenses in retirement can change significantly.

Make sure your investment portfolio reflects your risk adversity

Your investment portfolio should be allocated to enough liquid and conservative holdings in order to provide three to five years worth of living expenses. Being over-exposed to certain sectors, or industries, especially in an unstable economy could impact your retirement savings.

Be flexible with how you plan your retirement

It’s important to be adaptable to changes during retirement. This means allowing for changes in your spending based on where the market is going, and where you have your money tied up. If a large part of your savings are in securities, like stocks and bonds, if the market takes a turn for the worse, go easy on your cash reserves.

Live a debt free life

Being debt free is one of the most liberating feelings in the world. One of the most valuable components of a debt-free life is the finances that you have to spend wisely. Instead of going towards servicing debt, your money can go towards other investment opportunities, or to travel and leisure.

Your retirement should be about enjoying the rest of your life, not about struggling to make ends meet. A comfortable retirement requires responsible and conscientious planning and being objective about what you have and what you are able to spend. If you are approaching retirement, or know someone who is, keep the above considerations in mind and make sure that your retirement years are the most relaxing, stress-free of your life.