5 ways to prepare for retirement

Top 5 ways to prepare for retirement

Retirement takes planning and it is not a good idea to put off this task. Below I gathered 5 ways that can help you plan and commit to preparing for your retirement.

Did you know that fewer than half of Americans calculate how much they need to save for their retirement? If you are one of the average American than expect to spend around 20 years in retirement. So let me walk you through a few things that you can start doing today.

1. It is never too early to start saving

Unless you hit the Jackpot, you need to sit down and figure out how much money you will need while in retirement. Figure the amount that you feel would allow for a comfortable retirement and calculate how much money you need to save up to make that happen. Understand what you want, create a plan and stick to it.

2. Save it and forget it

It is one thing to start saving and it is another not to touch it. If you withdraw from your retirement savings you can lose principal and interest plus there is most likely a penalty charge as well. If needed you can always roll it into an IRA or to your new employer’s plan in case you are changing jobs. 

3. Social Security Benefits

You need to calculate the social security benefit that you will get. Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement. I have found an estimator On the Social Security Administrator website you can calculate your benefits by using their estimator.

4. Never stop asking questions

Always stay up to date on all retirement information. My tips are merely pointing you to the right direction but you need to read publications, talk to your employer, your bank or financial adviser. You can find more information on the Social Security Administration website.

5. Enjoy

This point might sound silly, but yes after all the planning you do now will my hope is that you will enjoy your retirement. Do some work now and enjoy the rest of your time! And do not forget to send us pictures. :)

If you find the above information helpful than come back to my blog in the future. Every week I am posting about topics that aim at seniors of Walnut Creek. If you would like to learn about something send me an email or contact me on my Facebook page. Send us your questions you want answered and give us ideas about what you would like to read about every week.