Retirement means different things to everyone, but financial security just does not happen. It takes a purposeful plan, and a commitment to stick to that financial plan. On average, most Americans spend 20 years of their life in the retirement stage. The truth is that less than half of all Americans have accurately calculated how much money they need to save throughout their life, to carry them through their retirement years. Below are some great tips that you can put into place right now, to be financially secure during your retirement.
- Save money
If you are currently saving money, keep at it, and try to increase your saving amount on a regular basis. If you have not starting saving, today is a good day to start. Saving cold hard cash for your retirement years should be a priority today. Have a plan, stick to that plan and set mini-goals, to help you keep on track. Remember, it is never too late (or too early) to start saving money.
- Know your financial needs
Experts have estimated that individuals will require about 70% of their current working income, to maintain the same standard of living in their retirement years. It is for this reason, that it is important to take control of your financial future – today. Planning ahead is the key component to a financially secure retirement.
- Contribute to 401K type savings plans
If you have not already signed up for a saving plan offered by your company, do it, and contribute all you can on a regular basis. The advantage is that your taxes will be reduced, and this makes a huge difference now and in the future. If your current company does not offer a type of 401K savings plan, ask them about it.
- How you save is as important as how much you save
Inflation needs to be part of your financial calculation for your retirement plan. Savings plans and/or pension plans, through your current company, are usually invested. Keep tabs on these investments, know your options, and don’t be afraid to ask questions relating to your money. It is advised “not to put all your eggs in one basket”, be diversified, as this improves the amount of our return and reduces the risk of a financial collapse. Knowledge about your money is the key to your future financial security.
- Evaluate your Health – Today
To keep medical bills to a minimum, it is strongly advised to schedule preventative medical exams (including a teeth cleaning). It is never too late to add exercise to your daily routine and to choose to eat healthy meals. Besides physical wellness, it is advised to stay mentally sharp, by reading and engaging in brain games. To ward off signs of depression, it is advised to have regular contact with friends and family.
- IRA (Individual Retirement Account)
IRA’s, offer an easy way to save toward your retirement. You can put at least $5,500 annually into an IRA, and if you are over the age of 50, you may be able to contribute more to your IRA on an annual basis.
- Know your Social Security benefits
Social Security benefits will pay an average of 40% of your earnings prior to retirement. It is advised that you understand what you will be getting and plan accordingly, so there will be minimal financial worry.
- Last Will and Testament
Long before you reach retirement age, you should have a Last Will and Testament in place. Sadly, more than two thirds of American adults do not have one. Visit this website for assistance with Estate Planning & Administration. Some excuses may be, that creating this important document will have many people facing their own mortality, and that can be a frightening concept. Other excuses involve laziness, or living under the false pretense that “there is plenty of time”.
A Will should be updated when:
- Marital status changes
- Significant increase in income and/or property.
- The executor of your Will dies.
- There is a birth (or adoption) in the family.
- When you move, as some states will not recognize an “out of state” Will, and deem them invalid.