Many people don’t want to think about planning for retirement. Like health issues, retirement planning can be scary to some. It shouldn’t be. Investing some time to investigate retirement plans will pay off. When making plans for your retirement, considering the following is a great place to start.

Know exactly what you’re going to need and what it will cost when you retire. 70% of your current income per year is a good ballpark figure to aim for. The less you make, the higher that percentage will be.

TIP! Find out how much money you will need to retire. Studies have shown that most people need around 75% of the income they were receiving before retirement.

Save early and watch your retirement savings grow. Even if you start small, you can save today. Your savings will exponentially grow over time. When your money resides in an account that pays interest, your money has the chance to grow to provide you with extra money later on.

Make regular contributions to your 401k and maximize your employer match, if available. This allows you to avoid some of the taxes that you will face in the future. This is free money when your employer matches what you put in.

Stay in shape and keep healthy! Your entire body will benefit from regular exercise. Work out often and you will soon fall into an enjoyable routine.

TIP! Cut back on miscellaneous items you often purchase during the week. Write down a list of all of your expenses and determine the items that you can do without.

Do you feel overwhelmed due to lack of saving? Now is as good a time as any. Check your finances and decide how much you can afford to save each month. Do not be concerned if it is less than you think it should be. Any amount is better than none, and beginning now will give your money more time for a return on your investment.

Examine any retirement savings plan provided by your employer. Take advantage of any retirement plans that your employer offers. Educate yourself as much as you can about the plan, how much you can or have to put in yourself, and when you can expect the money.

While saving as much as possible towards retirement is key, thinking about the types of investments to make is also important. Get your portfolio diversified and then be sure all of your options aren’t in the same area. Reducing risk is a must.

TIP! Retirement is something that most people dream of. They think retirement is a great time to do everything they couldn’t when they worked.

Postpone collecting Social Security if you are able to do so. This will increase the money that you get per month. It is easiest to do this if you are still able to work or can pull from other retirement income sources.

Go over your retirement portfolio no less than once quarterly. If you do it more often than this, you might start reacting emotionally to swings in the markets. If you don’t do it that often, you may lose opportunities. Find an investment agent to help you.

Many people think they will have plenty of time to do everything they ever wanted to after they retire. Your retirement will be here before you know it, and the time will then seem to fly by. Planning your activities a day ahead can help you to be in control of the time that you’re spending.

TIP! Your 401(k) is a great way to put away funds, especially if your company adds to it when you do. You pay into it before taxes, and this lets you save more.

Set goals, both short term and long term. You need goals in order to save money and for making important life decisions. If you know what kind of money you need, then you’ll know what needs to be saved. Doing some math will allow you to come up with monthly or weekly goals for saving.

Retirement may just be the perfect opportunity to get your dream of running a small business going. Many people have success during later years by operating a business from home. This can save you money and allow you to keep active.

As you calculate your needs for future retirement, keep the same standard of living you provide yourself with now in mind. To do this, you will need about four-fifths of your current income. Just be mindful not to spend extra money in your newfound free time.

TIP! Investments are important to consider for retirement. This will keep you from putting all of your money in one investment.

You may consider giving up your large family home once your children are grown. There are many expenses that go into this. Try moving to a condo, townhouse, or small home. You will save more money this way.

Retirement may be a lot of fun. However, you have to take an active role in making it happen. These ideas will help you create a wonderful retirement plan. You will no longer hate thinking about retirement once you have a plan in place.