In past years, heard-working individuals looked forward to retirement. In today’s society, people still look forward to retiring, but they retire later in life than previous years. In the years before, the traditional retirement age was 65 to receive the full benefits. The early retirement age was 62. Early retirement at this time yielded 80 percent of the amount of the full benefit. Today, the current retirement age is 66. Read on for information regarding being financially comfortable during retirement.
Open a Savings Account
A lot of people in their 20’s don’t think about retirement because they feel they have time to save. The truth is, the sooner you start saving, the more comfortable you can live during retirement. Saving money is not one of the easiest things you will do in your lifetime, but it’s not impossible.
Create a Plan
Creating a reasonable retirement plan is time-consuming, but also rewarding. Set goals within your plan to maintain a successful. One of the most important aspects of the plan you create is being realistic. A realistic retirement plan is one that is manageable and somewhat flexible. Start small and build your way up. Setting goals that are too much for your current situation is the perfect way to set yourself up for failure. Your retirement plan will change your situation changes. Make sure you set goals that will help you get where you want to be during retirement.
The age you decide to retire matters. The year you decide to retire is one of the determining factors the amount of money required for you to retire comfortably. The life expectancy is longer than it used to be. People often make the mistake of underestimating their life expectancy or their spouse’s which can be a detrimental change to your retirement plan.
Don’t Touch the Funds
Having funds available is tempting, especially when life happens. At the time, the money you spend may not seem like much, but every cent you spend adds up. Your retirement fund is not an emergency fund or fund for a rainy day. A tax deferred retirement plan is best in this situation.
At Robert’s Tax Advisory, we are dedicated to helping you through your financial journey in life. It’s never too late to get your finances in order. Contact us today to get started.