A lot of people dream about retirement throughout their entire careers. Retirement is when you should have time to put your feet up and relax. That does not happen in the absence of real planning. Keep reading to figure out how to start.

Determine how much money you will need to live once 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. Try to save a minimum of 90 percent to be safe.

Employer Matching

Make routine 401k contributions and maximize any available employer matching funds. You can save greater amounts through this because the money is not taxed. If you have a plan that has your employer matching the contributions you make, it is basically free money.

Once you retire, you will have more free time. Use this time to get fit. It’s critical for older folks to keep bones and muscles strong, and exercise can help your heart out too. Working out should be part of your everyday life in retirement.

TIP! To be ready for retirement, it’s important that you take action and begin saving as early as possible. Even if you cannot contribute a lot, something is better than nothing.

Are you feeling overwhelmed because you haven’t started saving yet? Take heart! There is no time like the present! Look at the finances you have and figure out what you need to get put away every month. Do not be concerned if it is less than you think it should be. Begin saving now, and you will soon have a tidy sum to invest.

If possible, wait a couple extra years before taking advantage of your Social Security benefits. You will receive considerable more income per month if you put it off by a few years. If you can still work some during retirement or you have other fund sources to pull from, retirement will be easier.

If you are 50 years old or greater, you can play catch up with your IRA account. Before age 50, you are limited to contributing $5,500 each year. However, after you are 50 years old, you can contribute a bit over 17 thousand. You can start late yet still have lots saved.

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

When calculating your retirement needs, plan on living the same lifestyle you do now. Since you will not be working any longer, it is safe to say you will need around 80 percent of your current income. When you do retire, try to live frugally to extend your savings.

As you near retirement, start paying off your loans. You should definitely have your home mortgage and auto loans paid for before retiring. You can better enjoy your golden years when you don’t owe any money.

Social Security

TIP! Get to contributing to your 401k regularly and make sure your employer match is maximized if you have that option. 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.

Be careful about relying on Social Security to support you. Social Security benefits may cover about forty percent of your living costs. Many people require 70-90 percent of their current salary to live a nice life after retirement.

Regardless of your financial circumstances, do not use retirement funds until you are supposed to. Doing so can be extremely costly. You may even lose some of the money you saved due to penalties, as well. Hold off on using retirement money until you’re really in retirement.

Be sure to have a good time. It can be tough to navigate life as you get older, but that’s why you need to stop and make sure that you are doing something every day that speaks to your inner self. Enjoy your hobbies and make the most of your life.

TIP! When you retire, don’t sit down! Get out there and get in shape. You will really need to care for your body in retirement, because it’s important as you age.

A reverse mortgage is helpful to many people during their retirement. A reverse mortgage is a mortgage based on how much equity you have in your home. The loan doesn’t have to be repaid by you, it is taken out of your estate when you pass away. This will help to increase your savings.

You need to learn as much about Medicare as you can and figure out how that might play a role in your health insurance. You may want to have supplemental insurance during retirement, and you need to know how this will work with Medicare. Making sure you are educated on the matter will ensure that you are always fully covered.

Social Security should never be considered as a sole means of funding your retirement. Although that money will help, it is not enough to live on comfortably. Generally, Social Security offers roughly 40 percent of your previous income, and this likely will be insufficient.

TIP! Do you worry because you have not begun planning or saving just yet? It’s never too late to begin saving. Check your finances and decide how much you can afford to save each month.

You may be able to turn a former hobby into a profitable venture. You could be creative and like to paint, sew, or do some woodwork. Use your skills during the colder months and sell your wares during summer flea markets and craft shows.

Parents generally want the best for their children. This means they want to save for their college one day. Do not neglect your retirement for the sake of their education. Kids can always get college loans and scholarships to pay their way. Those types of opportunities are not available to retirees, so allocating your assets appropriately is key.

Get your retirement planned for way before you start working on retiring. This includes more than just saving, as well. Think about your spending habits so that you can prepare to keep that same lifestyle during your retirement. Is your current home one that you can afford? Will you be able to afford to go to restaurants like you do now? If you can’t make the adjustments on paper years before you have to in life.

TIP! Check out your employer’s retirement plan. If they offer a 401K plan, take advantage of it.

Most people want to enjoy their retirement. These suggestions will help you make that a reality. It is best to start right now because before you know it, you will be old enough to retire. Best wishes for success!