If you are around fifty years old, you ought to be getting ready for retirement living. For many, retirement is just around the corner, around the age of sixty. Some individuals will find themselves in great financial standing, and well prepared for their retirement living situation.However, many people recognize they are unprepared.
If you are unprepared for retirement, it isn’t too late to start saving. If you recently turned fifty,you have around ten years to save. While it won’t be as easy as it would have been when you were younger, it is still possible.
The first stage in planning for retirement is determining how much money you need to save. Overall, financial experts say most individuals need at least 70% of their current income to financially make it through retirement, living at similar standards. Consider that a realistic expectation is to spend thirty years in retirement, while only about 30% to 40% of your retirement living needs can reasonably be expected to be supplemented from social security benefits.
Can you afford to retire while maintaining your current standard of living? Living standards have a large impact on the amount you need to save. If you are accustomed to fine dining at every meal and traveling to expensive resorts, you may consider cutting out some unnecessary expenses. If you spend most of your money before you retire, you won’t be able to afford a luxurious retirement home such as The Abbey Retirement Living Community in West Houston. Instead, you may be forced to move in with someone in your family and ask for them to help you monetarily.
If you have been making contributions to a 401(k) plan at work, you are ahead of the game. You likely have a at least a few thousand dollars saved. Continue to make maximum contributions, while following all the plan guidelines to continue access to the plan. When you do this, your company will match the contributions that you make toward your retirement living needs. Contributing to a 401K can make a difference, specifically if you find aren’t prepared for retirement living.
If you are employed, it is also valuable to mention pension plans. Pension plans are advised for long-term employees. Make sure to read the fine print though, because some companies deny your pension if you quit your job.
It is also important to examine Individual Retirement Accounts (IRAs). IRAs offer numerous tax benefits, and they are a much better approach than traditional savings accounts. Why? IRAs are tax-deferred, which creates an incentive for you to let the account grow without being tempted to use it. Fixed income investments such as government and municipal bonds can help create a steady income stream for your retirement living needs. You do not realize how much money you spend until you are no longer employed. Fixed income investments can help supplement your retirement living income.
Laws concerning retirement savings change each year, so discuss your situation with a financial expert who can help you maneuver the rules and regulations to your best interest.
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