You can enjoy a retirement that is relaxing and fun. Proper planning is essential. The tips that follow will help you with all aspects of retirement. Make sure to bookmark this article. Read it in full to learn all you can. You will come away with a great amount of knowledge.

Determine the costs you will face after you retire. Studies show that the average American requires at least 75 percent of their normal income to survive during retirement: that’s 75 percent of the salary that you are earning right now. The less you make, the higher that percentage will be.

TIP! Don’t spend so much money on miscellaneous things when you’re going through your week. Keep a list of the things that you must live with.

Do not spend money on things that you do not need. Jot down all your expenses, and eliminate the things you can go without. This will give you more money to put towards your retirement plans.

Working part time in the future may be an option. If you are not able to fully retire, consider doing a partial retirement. One way to do this is to remain in your current job on a part-time basis. You can transition your job to allow you more freedom while you adjust financially.

Make sure that you make a contribution from every one of your paychecks to your 401(k) plan. If your employer matches your contributions, pay as much as you can into it. The 401k is going to let you put back some pre-tax money and that means you can save a little while not affecting your paycheck too much. If you have an employer that matches what you contribute, you’re basically getting free cash.

TIP! Most people look forward to their retirement, especially after they have been working for several years. They think that retirement is a wondrous time where they can do everything they didn’t have time for while they worked.

Use the extra time you have during retirement to increase your fitness level. Maintaining the health of your bones and cardiovascular system is more important than ever. Exercising will help. Take time to participate in regular workouts so that you can stay healthy and enjoy retirement for a long time.

See if your company offers a savings program. If there is a 401k plan, sign up and start adding as much as possible. Learn everything about your plan, when you will be vested in the plan, and how much you should contribute.

Investments are important to consider for retirement. Be sure that you avoid putting everything in one place; have a properly diversified portfolio. It will make your savings safer.

TIP! Get your retirement portfolio rebalanced every quarter of a year. Do it too often and you are vulnerable to small market swings.

Every quarter, rebalance your retirement investment portfolio If you do it more often than this, you might start reacting emotionally to swings in the markets. If you do it less often than quarterly, you are going to miss out on the chance of taking money from growing sectors and reinvesting in areas about to hit their next growth cycle. Work with an investment professional to determine the right allocations for your money.

Downsizing when retiring can help you save money that may help you later on. This will help you financially in the future. Things like unexpected medical bills can throw a monkey wrench into even the best-laid plans.

What are your long-term health care plans? Your health is likely to get worse as the years go on. As health declines, medical expenses rise. Long term health plans help alleviate the strain of increase costs.

TIP! Most people believe they will have all the time in the world to do things they always wanted to when they retire. But, it is amazing how quickly time begins to fly.

If you work for a company, take a close look at what pension plans they offer. Learn all the ins and outs of programs that will help cover your retirement. Determine how you are affected if you move jobs. You may be able to get benefits from your employer. Additionally, you may be eligible for some benefits from your spouse’s retirement plan.

You want to set goals that will cover both the short-term and the long-term, too. Setting goals is good for many areas of your life, and it’s really a good thing when you want to save money. If you need to know how much cash you need to know how much to save. Doing a little bit of math will show you how much you need to save each week or month if you choose.

Once you retire, it might be a good time to set up a small business you’ve always dreamed of having. Many people succeed later on by taking their lifelong hobby and creating small business at home from it. This can save you money and allow you to keep active.

TIP! Figure out what kind of pension plans your employer has. If you find a traditional plan, be sure to research it thoroughly, especially the coverage that it offers.

If you are 50 years old or greater, you can play catch up with your IRA account. IRA’s normally have a limit of $5,500 per year of contributions. Once you reach age 50, the limit is increased. This will allow older people to save up.

When figuring out how much money you need to live on in retirement, plan on having a similar lifestyle to the one you enjoy prior to retirement. It is probably safe to estimate that your living expenses will be approximately 80 percent of your current expenses since you will not have to pay work-related expenses, such as wardrobe, transportation costs, etc. When you do retire, try to live frugally to extend your savings.

Get together with retired friends. It can be lots of fun to socialize with others who have quit working. Sharing activities with other retirees can be a lot of fun. This will also provide you with a functional support group.

TIP! Are you age 50 or older? Consider playing “catch up” with your IRA. Typically, there is a $5,500 yearly limit on IRA savings.

Spending a little time now will pay dividends later on. These tips will give you a great start. Use them to make your future easier. You will find more enjoyment in your retirement years if you are well prepared. Begin now!