You may feel challenged if you have recently retired. This will be especially true if you are feeling like your job is what defines you. Retirement can be a good thing, but it definitely changes your life. Prepare for your free time by following these tips.

Determine how much money you will need to live once you retire. Studies that have been done state that the average person needs about 75 percent of what they normally make today in order to survive retirement. The less you make, the higher that percentage will be.

TIP! Consider partial retirement. If you would like to retire, but cannot afford to yet, partial retirement may be a consideration.

Begin saving while you are young and continue steadily throughout your life. Even if you need to being in a small way, start saving as soon as possible. As your income rises, your savings should to. Keeping funds in interest bearing accounts helps grow the balances.

Partial Retirement

Think about taking a partial retirement. Partial retirement may be the answer if you are ready to retire but don’t have the money. This means cutting down your hours at your current job. This will allow you to continue to bring in some income, while beginning retirement, which can always be expanded upon in the future.

TIP! With all the free time you should have on your hands now that you’re retired, you’ve got no excuse not to get in great shape! It is very important to keep your muscles, bones and heart strong as you grow older. A good retirement features regular exercise so that you can live life to the fullest.

Regularly contribute to a 401k, and boost the employer’s match if you can. A 401(k) plan gives anyone the ability to save more pre-tax dollars, so that you can actually put away more, without feeling so much sting from doing so with each paycheck. If the employer matches your contributions, they are basically giving you free money.

Examine what your employer offers in the way of a retirement savings plan. Sign up for your 401(k) as soon as possible. Don’t just sign up and ignore these things though. Take the time to learn how much money you should put into your plans and any stipulations that come with each.

You should save as much as you can for your retirement, but you should also learn how to invest that money wisely to maximize returns. Try not to put all of your eggs into one basket. Diversify your portfolio. This way, you assume less risk.

TIP! Are you stressed because you don’t have a retirement plan yet? There is never a bad time to get started. Start today by looking at how much you could afford to save.

Try to downsize when you get into retiring because the money that you’re going to save can mean a lot to you later on. Even though you might think your financial future is all planned out, life happens! Bills and other huge expenses might throw you off your plan.

Lots of folks think there is no rush, because they can do it all upon retirement. However, time often seems to speed by as we age. Advance planning of daily activities is one way to organize your time.

Health Plan

TIP! Consider waiting a few extra years to take advantage of Social Security income if you can afford to. Putting off retirement by even a few years means that you will receive more money and be able to live more comfortably.

Consider a long term care health plan. Most people experience some decline in health as they get older. Poor health can cost a lot in the future. A good health plan will cover you at home and later, in a facility if need be.

Learn about pension plans. If you can locate one that’s traditional, figure out what it works like and if it covers you. You should also know what happens to your plan if you change jobs. You should also learn if you are eligible for any benefits from the previous employer after you leave. You may also be eligible for benefits via your spouse’s pension plan.

You want to set goals that will cover both the short-term and the long-term, too. Goals are important for anything in life and they really help when it comes to saving money. If you know about how much money you’ll need, then you know how much you need to save. By just doing a bit of math, you can figure out how much you need to save every week and every month.

TIP! Go over your retirement portfolio no less than once quarterly. Rebalancing more often will leave you vulnerable, emotionally, to any market swings.

You should calculate your retirement for the lifestyle you have now. Your estimated expenses will probably be near 80 percent of the current level because you will not have the travel expenses of work. Therefore, you will need to have some extra cash available.

Be careful about relying on Social Security to support you. These benefits cover less than half of your current earnings. It takes approximately 3/4 of your previous earnings to be comfortable.

If you need to make every dollar go further, downsizing can be wise. While your home may be paid off, you still have to pay to maintain a large property. Consider moving to a smaller home, townhouse or condo. You will save a lot of money this way.

TIP! Downsize when you are approaching retirement. While you may think the future of your finances are already planned out, things can and will happen.

What does your retirement income look like these days? This includes any government benefits, savings interest, and employer pensions. The comfort level of your retirement will be determined by how much money you put away in advance. What can you do now to help you to have more money in your retirement?

Make sure you find ways to enjoy life. Just because you’re old, it doesn’t mean you can’t enjoy yourself and learn things about yourself still. Take up hobbies you enjoy to fill each day with happiness.

If you enjoy any kind of a hobby, think about if it’s something that can earn you some money. Can you make cabinets? Or maybe create paintings you can sell? Try spending the winter doing projects and selling them at some local feas markets in the summer.

TIP! Many people think they will have plenty of time to do everything they ever wanted to after they retire. However time seems to slip away faster and faster as years pass.

Now that you’ve read this, you should know what retirement is considered one of the best points of life. Your days will include what you want them to. Use the tips you learned here to get the life you want and deserve upon retirement.