So, how to plan for retirement when unemployed? This is a question that we have been seeing a lot and in a sense, it’s great to see. Not because people are unemployed but the fact that folks out of work are not negative in their approach to retirement planning after a setback.
Losing your job for many means just a few paychecks from being broke, or so the experts tell us, but those brave and courageous enough to still look forward and put their retirement plan on the priority list, then that’s great.
But it’s important to remember there are really two types of unemployed people to consider here according to a recent report at voices.yahoo.com. The people who can’t find steady work in a hurry are the ones who will probably struggle with the idea of planning retirement while unemployed and will probably be dismissive of the idea citing current needs ahead of future needs.
That’s okay and there’s nothing wrong with that.
So how can you plan a retirement when out of work then. The following tips are a great starting point and require some discipline. For example:
- cut spending
- lifestyle changes
- living with a conservative mindset
- restrict your eating out habits
- look at other ways of earning extra income
Planning for retirement when you are unemployed seems like an oxymoron. However, if you intend to have a comfortable retirement some day, you can never forget about the preparation. People who have prepared look forward to their retirement years. Others may be staring at years of working beyond the time for retirement just to make ends meet. This does not make retirement a period of life to look forward to, but another time to be endured. Good planning that starts early can lead to a great retirement life.
What constitutes being unemployed.
Being unemployed and being jobless can be two different things. Many people hit the unemployment rolls because their companies need to cut the immediate workforce without losing employees. Employees are asked to become voluntarily unemployed for a month or more so that workers who need the extra income can continue to work. These workers have a job to return to almost at will. Truly unemployed people are those who have lost their jobs and cannot find immediate steady work. The first group are doing fine financially for the most part and can continue their efforts toward retirement security. The second group is not usually so fortunate. Either way, you need to try to keep retirement in focus…..
Some will say that most of the tips on the list will just occur naturally because money will be tighter. That’s true and that can’t be a bad thing.
Exploring opportunities to make extra income is a positive way to tackle this too and many will look online. But be careful because the internet can be like swimming in a tank full of sharks when it comes to make money opportunities and this is a topic we will cover soon.
How about you? Are you unemployed? Are you still able to think and contribute towards your retirement plan?