Retirement is something that we all look forward to, and for those who work hard for practically every day of their lives, retirement serves as some sort of reward. However, unless you were born rich or you receive an inheritance somewhere along the way, it is absolutely necessary for you to make sure that you have enough money to last you for the rest of your non-working life.
We all know that we need to fund our retirement, but how to do this exactly is another story. If you are young, you still have a long way to go and a long time to prepare for retirement. If you are nearing retirement age, it still is not too late to prepare for this period in your life. What can you do to make sure that you will be comfortably off when you retire? Take a look at some of these things that will help you do just that.
See the bigger picture.
There’s no going around it – you have to adapt a long term perspective. This might be a little more difficult if you’re in your early 20s and just starting out in the corporate world. However, retirement is part of your life – unless you really want to work until the day you die, literally. Whatever your age is, you need to look at the future in order to prepare for that time when you will stop working and retire.
Arm yourself with information regarding your retirement needs.
This could be tricky as you may have no idea what you want to do exactly when you retire. What if, right now, you are content to stay at house beside the beach and never leave; and by the time you retire, you decide you want to travel the world? The idea is to have a sketch of what kind of lifestyle you want to have when you retire. This will help you in identifying your financial needs.
With your idea of your own needs for retirement set, you can actually make use of several retirement calculators that are available online. These calculators are very useful as they help you estimate the amount of money that you will need to sustain the kind of lifestyle that you want to have when you retire. The calculators will take into account various factors in determining the amount. Some of these factors include:
- Social Security
Get rid of your debt.
Let’s face it – we are indeed a nation of debt. There are a lot of people who are starting to deal with their debt wisely, though, and slowly getting rid of it. If they can do it, so can you! The worst thing that could happen to your retirement money is to go to debt that you incurred early in your life. Can you imagine having to pay off debts when you are not making a living anymore? That should be enough to convince you to deal with your debt NOW. The sooner that you have ZERO debt, the more you can put into your retirement savings plan/s.
Don’t leave your retirement planning to other people.
If you have been with your company long, or you are planning on staying with them for many years, it does not mean that you should simply let them figure out your retirement planning strategy. Yes, employers offer 401(k) plans and all that, but the ultimate responsibility is yours. You might even want to set up other retirement plans on your own if you have the capacity to do so. The more that you save and plan today, the better off you will be when the time to retire comes.
Set realistic goals.
While we would all love to retire in luxury, it just might not be possible for everyone. When you set your goals for retirement, be realistic. If you’re only earning so much today and you have a certain amount of necessary expenses, then you can only put aside so much for your retirement plan. Do not fool yourself into thinking that you will be able to buy a yacht and sail around the world when you retire if you know that it is unlikely to happen. Instead, make goals that you know you can attain and then set out to achieve them. You never know, with a good strategy and a little bit of luck, you might even exceed them!
There is no point in procrastinating. You may say that you have decades left before retirement, but you do realize that time flies by so quickly. If you do not take that step now, you might end up postponing it year after year, and before you know it, you might be facing a penniless retirement. Now, you wouldn’t want that, would you?
Retirement is something that you can plan for today. You can do something about it, why don’t you?
Retirement is indeed far from the minds of young people nowadays. This is a good wake up call, thanks.
Thank you for the tips. We all forget the big picture sometimes but if we don’t take care of our future who will?
I want to retire early. This could just help me achieve that dream.