1 in 3 Americans has not started saving for retirement? 56 percent of Americans have $10,000 or less saved for retirement. You can keep yourself on the right track for retirement success with a checklist.
Retirement Success Checklist
Following this checklist gives you everything you need for a successful, comfortable retirement.
1. Savings Account
You should keep no less than three months worth of living expenses in your savings account. Having a savings account allows you to save money for retirement and be better prepared for delays with social security and pension funds.
2. Create A Budget
You need to create a before and after budget to stay on track with your retirement expenses. But before you take these steps, you need to analyze your expenses you have set aside for retirement. It’s in your best interest to account for your current expenses, and then compare it to the changes in expenses once you retire. A lot of people underestimate their expenses, and this is the primary reason people are not prepared for retirement. The better you understand your expenses, the better you can prepare for retirement.
3. Learn About Retirement and Taxes
It is important that you know how your retirement income is taxed. There are many retirement candidates that do not know that a portion of their income needs to be set aside for tax purposes. Always remember to factor money for taxes in your retirement planning.
4. Consider Your Health Insurance Options
Health insurance and medical expenses are important when retirement is concerned. If you are working toward early retirement, health insurance coverage can become expensive. Medicare is available, but coverage stars for people who are at least 65 years of age. Keep in mind that Medicare will only account for half of the total cost of your medical expenses. Be sure to factor both medical expenses and health insurance coverage in your budget for retirement.
Here at Roberts Tax Advisory, we are dedicated to helping you with your retirement and tax needs. Contact us today to see how we can help you prepare for retirement or help with your taxes.
