Retirement Savings Tips

Retirement is something that will happen to all of us if we’re lucky. Unfortunately, though, it’s also something that most of us tend to put off thinking about. While retirement might seem far away, it will be here sooner than you think, so the key is to start preparing right now, but how much should you be saving?

The answer to that question really depends on what your retirement dreams and goals are. Someone who just wants to live comfortably in his home, for example, is going to have very different retirement needs than someone who wants to travel the world. Thus, the first step is to think about what you plan to do in retirement and how much it will cost; knowing this information will help you to save and plan realistically.     

Retirement Savings Tips

Based on an estimate- remember, it’s always best to estimate high- of your retirement expenses, you should determine approximately how much you need to save per year to meet your goal. In general, though, the rule is to try and save at least 15% of your pretax income, more if you have big plans for your life in retirement.

Try, if you can, to maintain a 401(k) or other workplace retirement accountant where your employer will match your contributions. This is one of the easiest and fastest ways to get to that 15% mark (and beyond!).

Also, keep in mind that the sooner you start saving, the better, and the easier it will be to hit that 15% goal. More time gives you more time to save, more time for investments to grow, and just more time to think and plan for what you want to do in the future and how you want to live.

Bear in mind, too, that the longer you work, the better in terms of the amount your savings can and will grow. If you can keep these simple tips in mind and perhaps hire a financial advisor to give you advice and assistance along the way, you should enjoy a wonderful, fulfilling, and above all else, secure retirement.

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What Not to do Before You Retire

Are you going to retire within the next year or so? If so, you’re probably excited and looking forward to a time when you don’t have to work and can enjoy your life.   

However, even though you’re close to the finish line, the race isn’t over yet! Now isn’t the time to cut loose. In fact, it’s more important now, in the final working stages before retirement, to do the right things.

In order to help you enter into the blissful retirement period you’ve always dreamed of, here’s a list of things you absolutely shouldn’t do before retirement.

Don’t Stop Planning

Hopefully, you’ve carefully budgeted your money and saved throughout the last few years.

Whether you have or you haven’t, now is definitely not the time to let such matters fall to the side.

You absolutely need to be sticking to a budget- preferably a budget that allots money for savings each month. More importantly, you need to have developed a realistic idea of how much money you will need each month during your retirement.

If you can start sticking to a retirement budget now, before you’ve actually retired, you’ll have time to see how your budget works for you. If it’s not quite right, you still have time to make adjustments.

Don’t Ignore Insurance

Just as you don’t want to ignore budgeting matters during your pre-retirement phase, you also don’t want to ignore your insurance policies.

In fact, the period right before retirement is actually the perfect time to review your insurance policies.

Make sure none of your policies are going to become defunct before you can start getting Medicare (at the age of 65).

Also, your budget is likely to change during retirement, so you may need to adjust your policies and premiums based on your new budget.

Don’t Put off Home Refinancing

When high school seniors start getting lazy and doing a lot of procrastination, it’s often referred to as “senioritis.” Don’t develop your own form of true senioritis, especially when it comes to refinancing your home.

If this is something you’re considering or have already decided on, it’s best to go ahead and do it while you’re still generating an income.

A lot of creditors aren’t as willing to offer loans to those who have already retired, so if refinancing is something you want, it’s best to take care of it now.

Don’t File for Social Security....Yet

The rule is that you can file for social security the minute you hit 62. However, that’s not always the smartest decision.

You should understand that your monthly benefits grow the longer you put off filing for social security. They continue to do so up until you reach the age of 70. So, the longer you can hold off- obviously, the best case scenario is that you wait until you actually are 70- the better your pay-off.

If you’ve been banking on social security but are considering waiting to file, now is the perfect time to take a look at your budget and see where you can make adjustments that will allow you to delay receiving your social security funds.

Don’t Set Yourself up for Boredom

Finally, while it’s obviously very important to do some smart financial planning during this stage of your life, it’s also very important to plan for...well...your life in general.

A lot of people are surprised to find that they are bored, lonely, and even depressed once they retire. Don’t let that be you.

Now is the time to start making plans for fun during retirement! Consider groups or organizations you might join, places you might travel to, and activities or causes you might want to get involved in.

After all, the whole purpose of planning for retirement is so that you can enjoy life to the fullest once you’re done working!

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