Often, people envision sipping umbrella drinks on a warm tropical island when the word retirement is mentioned. It can be, but only if you plan it right. The tips in this article can help you plan the retirement that is right for you.

Try to determine what your expenses will be like once you retire. It has been proven that most folks needs at least 3/4 of their current income to enjoy a comfortable retirement. The less you make, the higher that percentage will be.

TIP! Save earlier for more comfort during retirement. Even if you need to start tiny, start today.

Try to reduce your spending on miscellaneous items. Make a budget and figure out what you can remove. Over the course of 30 years, these expenses can really add up and eliminating them can serve as a large source of income.

Start your saving early, and continue it until you retire. Even if you don’t think you have a lot to put toward retirement, save as much as you can, no matter the dollar amount. Once you start earning more, you will be able to save more. If you put money in an account that accrues interest, your money will grow.

A lot of people like to think about when they can retire, especially if they’ve been working for quite some time. They will think that retiring will be great since they can do activities that they couldn’t when they worked. This can certainly be the case, but it does take hard work to get to this point.

TIP! When you have worked for many years, retirement is probably quite appealing. People think retirement is going to be a dream come true.

Look at the retirement savings plan that you have through your employer. If they offer a 401K plan, take advantage of it. 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.

Balance your saving portfolio quarterly. You can become emotionally vulnerable to some market swings if you do it more frequently than that. If you do not balance your portfolio often, you may be missing out on great opportunities. Talk with a financial adviser to determine the best plan for you.

Work on downsizing while approaching retirement, as the money saved will come in handy. Even though you may think things are all planned well, things do happen. You could get sick or your car could break down, and how will you pay for these things and a massive mortgage?

TIP! 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.

Many people put off doing the things they enjoy until they retire. Your retirement will be here before you know it, and the time will then seem to fly by. Planning your daily activities in advance could help you to be efficient in utilizing your time.

If you’re over 50, try making “catch up” contribution to the IRA. Generally speaking, the IRA limit is $5,500. But, the limit is more like $17,500 once you reach 50. This will allow older people to save up.

Your retirement plan should be based on a similar lifestyle you have. 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.

TIP! Once you retire, what excuse is there not to stay in shape? Maintaining the health of your bones and cardiovascular system is more important than ever. Exercising will help.

Try paying your loans off now, before you ever get to retirement age. Your mortgage and auto loan will be a lot easier to deal with if you can contribute a significant amount of money to them prior to actually retiring, so consider your options. The fewer financial obligations you have as you retire, the more you will be able to enjoy your golden years.

Don’t think that Social Security benefits will cover the cost of living. It will help, but won’t be enough to live on. Most folks will want at least 70 percent of what they made before retirement to have a comfortable life.

If you need to make every dollar go further, downsizing can be wise. Your mortgage may be paid in full; however, the maintenance and utilities on a large house can put a dent in your retirement funds. Downsizing to a smaller house makes economic sense for retirement. This is something that can help you save quite a bit of money in the long run.

TIP! Is retirement planning overwhelming you? It’s not too late. Examine your financial situation carefully and decide on an amount of money you can invest each month.

Now you know that retirement is more than just having a good time vacationing. Without proper planning, retiring can be a negative experience. Now that you have read this article, you should be well-prepared for this adventure in your life.