If it is your time to retire, are you wondering what to do now? This holds true if your job and lifestyle define you. While there is nothing to fear about retirement, your life will certainly be different. Use these suggestions to make the most of it.
Start saving as early as you can, and keep saving until you’re old enough to retire. Even if you need to being in a small way, start saving as soon as possible. As your income rises, so should your savings. The money you earn in interest will increase the amount available to you later, which can go a long way in retirement.
Contribute at least as much to your 401K as your employer will match. 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. Often, companies will contribute as much to your account as you do.
Do you worry because you have not begun planning or saving just yet? There is never a bad time to get started. Look at the finances you have and figure out what you need to get put away every month. A little will go a long way. Any money is better than no money, and the quicker you get things going, the more interest you’ll be in a position to earn.
Health Plan
Consider a long term care health plan. Health declines for the majority of folks as they age. Poor health can cost a lot in the future. Having a long-term health plan means that your healthcare needs should be covered when and if your health declines.
What does your employer offer in terms of pension plans? Are you covered by a traditional option? If you’re changing jobs, look into whether you can keep your current plan or not. See if your previous employer offers you any benefits. You might also be able to tap into your spouse’s benefits through their pension plan.
If you have always wanted to start your own business, a good time for that may be during your retirement. You can start a small business that you always dreamed of. A business can help supply extra income needed to comfortably retire.
When calculating your retirement needs, plan on living the same lifestyle you do now. You will need approximately 80 percent of your current income to maintain your lifestyle. Just know that you shouldn’t be spending money as a free time activity.
Try to pay off loans right away when retirement gets close. The bills you face after retirement will seem far less overwhelming if you can reduce them to something more manageable now. The less you need to pay for during retirement, the more you will be able to enjoy that time of your life.
Don’t put all your eggs in the Social Security basket. These benefits will cover some of your expenses, but not all of them. You actually require 70-80 percent of your salary, though, if you want to enjoy your time in retirement.
Retirement is a great time to get to spend time with grandkids. Your children may need you to help them with childcare sometimes. Think about all the things you can do with the grand kids to have fun with them. But avoid becoming a full time baby sitter.
Never take money from your retirement savings. Doing so can be extremely costly. There are also a load of penalties that you will incur. Use the money only if you have retired.
Never stop enjoying life. Try to do something enjoyable every day. Find hobbies that you love.
Social Security
Avoid relying solely on Social Security during retirement. Though it may be of some financial help, most people cannot live on just this income along nowadays. Social Security benefits normally provide you with approximately 40 percent of the amount you earned when you were still in the workforce.
If there is a particular hobby you have enjoyed for years, consider whether or not you can make a little extra money with it. Perhaps you want to try your hand at sewing or writing. Enjoy working on projects during the winter and sell them at a summer flea market.
Clearly, retirement has the potential to be the happiest and most rewarding phase of life. You are able to control the hours in your day and have a lot of fun. When you put this advice to use, your retirement can be a great one.
