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Financial Boot Camp Retirement Training

By: Garry Crystal - Updated: 9 Aug 2010 | comments*Discuss
Financial Boot Camp Retirement Training

Those who have given little thought to their approaching retirement should consider putting themselves through financial boot camp retirement training. Retirement training allows those nearing retirement to actually experience what it means to live on less money over an extended period of time.

What Is Financial Boot Camp Retirement Training?

It is a concept currently underway in the US to help those nearing retirement get to grips with their finances. Financial boot camp retirement training takes place over the course of a year and focuses on simulating the financial aspects of retirement. According to the financial advisors who put their clients through this process it’s a way of making retirement real instead of just being an abstract future prospect.

What Is The Point of Financial Retirement Training?

In the UK around 72% of employees have little or no pension plans in place for their retirement. This should be a scary prospect but it seems more people are leaving these investment plans until later in life. Some people are also just hoping for the best and thinking that the state pension will be enough to see them through their later years. Financial boot camp retirement training brings the financial reality of retirement into the picture. It forces people to try and live on less money and to wisely invest the money they have now.

So This Training Is All About Living On Less?

Living on less money is only part of the retirement training plan. Participants are required to take a realistic look at where exactly their money goes each year. They are also required to examine their pensions and investments and consider how much they will have to live on come retirement. Goals are included in the plan such as paying off a mortgage before retirement hits. Participants should compare how much they spend each year now with the money they will actually have to live on come retirement.

So Participants Aren’t Actually Living on Less?

Actually clients who take part in the financial boot camp retirement training do actually live on less. For around a year they will place surplus cash they have now into savings and will not touch these. They are only permitted to live on the same amount of money they would have when they are retired. Over the course of the year they will experience almost exactly how it feels to live on this amount of money when they are retired.

What Has Been The Outcome of The Training So Far?

Around eight out of 10 participants in the US who lasted the course decided to work a few years later into life. Postponing the retirement date even by a few years will give them enough money to live more comfortably during retirement, provided they invest the extra money wisely. Eight out of ten participants felt they were not nearly ready enough financially for retirement after taking the training.

How Can I Put Myself Through this Financial Training?

In real terms it would mean taking a long hard look at current finances including income and expenditure and comparing it to expected retirement income and expenditure. It also means considering different forms of investments that might bring in a better return than present pension plans such as growth shares. Those who really want to experience the financial aspects of retirement should consider trying to live for several months on the expected retirement income.

How Do I Factor In My Day Job During the Training?

Financial boot camp retirement training does not mean giving up the day job. Participants need to imagine that they are not working and consider instead how they will fill their days, especially with less money to live on. This could take the option of considering part time work while retired or how leisure aspects will eat into finances. Many retirees decide to restart hobbies or take nightclasses and these pursuits can cost money and do need to be factored in.

I’m Years from Retirement Why Should I Put Myself Through This?

Where financial retirement plans are concerned it’s never too early to start saving and investing for the future. Financial advisors claim that today’s twentysomething employees will need to work until they are 72 to ensure a decent income from their pensions for their retirement. Financial boot camp retirement training brings home the reality of living on less money with no actual way to up the level of income during retirement. It does actually scare people into realising that retirement does take a great deal of planning in order to live comfortably.

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