Many people never give their own retirement much of a thought. They may procrastinate or think things will just fall into place. This kind of carelessness can equate to big problems when retirement age comes around. Learn about proper planning here.

Figure out exactly what your retirement needs and costs will be. It will cost you approximately three-quarters of your current income. If you make less money, you may need 90%.

TIP! Reduce the little things you buy every week. Get a list written down of each expense you have and figure out what you can live without.

Think about partial retirement. If you want to retire but just can’t afford it yet, you may want to consider partial retirement. This can mean working at your current career part time. You can relax but you will still be able to make a little money.

Employer Matches

If your employer matches your contributions, put as much money into your investments as you can. A 401k permits savings of pre-tax funds, thus allowing you to accumulate more money. If the employer matches your contributions, they are basically giving you free money.

TIP! Many people are excited about retiring, especially when they’ve worked a long time. They will think that retiring will be great since they can do activities that they couldn’t when they worked.

Retirement will free up a lot of your time. Use it to get in shape! Healthy muscles and bones will be very important for you at this time; you need to work on your cardiovascular exercises too. Try working out regularly. You may find that you like it more.

Look into what type of health plans you may need. For most people, health deteriorates as they get older. Extra healthcare might be necessary, and this can get costly. With a long term health plan, your health care needs will be met in a facility or even at home if your health deteriorates.

Find out about employer pension plans. If you find a traditional plan, be sure to research it thoroughly, especially the coverage that it offers. If you switch jobs, learn about the repercussions on your current plan. See if you will get benefits from your earlier employer. You might also be able to tap into your spouse’s benefits through their pension plan.

TIP! Contribute to your 401k regularly and take full advantage of any employer match that is provided. The 401k puts away pre-tax dollars, letting you save money and reduce the strain on your paycheck.

When it comes to retiring, set both present and future goals. Goals are always important and can help you save money. When you know how much money you will need to live on, you will know how much that you have to save. Do the math and come up with the amount you need to save every week or every month.

You may want to consider starting a small business at retirement age. A lot of people turn their hobby into a successful business that they can do from home. The great thing is that the enterprise is low-stress and not vital to survival.

If you happen to be over 50, you have the ability to make additional IRA contributions. There is a $5,500 limit every year for your IRA. But once you hit 50 years old, you can raise that limit to 17,500 a year. This is great for those that started late but wish to save a lot.

TIP! Exercise is a great way to spend some of your time each day. You have to keep yourself healthy to ensure your medical costs don’t go up.

When calculating your retirement needs, plan on living the same lifestyle you do now. A good rule of thumb is to plan on having about 80% of your current income available in retirement. When your retirement actually comes about, you will need to rein in the impulse to spend a lot more on your leisure activities.

Find friends that are of the same age as you. Finding a group of others that don’t work just like you will allow you to do enjoyable things with them. You and your friends can enjoy common activities for those who are retired. In addition, you may find it easier to talk to them than to people who are younger than you.

If you want to save money during your retirement years, you can downsize. Even if you’re not someone with a mortgage, you will still have expenses to pay, like your electricity and landscaping. You may prefer a different living situation after you retire. This will save you a lot of money in the future.

TIP! See if your company offers a savings program. If they have one like a 401(k) plan, make sure you sign up and add what you can.

When you retire, you can spend quality time with your grandkids. Your grown children may appreciate some assistance with watching their babies. Think about all the things you can do with the grand kids to have fun with them. Don’t pull yourself too thin by doing childcare full-time.

Retirement is a time when we can all sit back and relax, but only if we’ve planned appropriately. What steps have you taken to ensure a happy retirement? By reading this article, you’ve done something smart. Use the above advice to begin planning for your retirement now.