Retirement might seem like it’s far off into the future, whether you’ve just started your career or whether you’re ten years into it. Don’t put off planning for your retirement just because it seems so far away. If you put in substantial preparation throughout your career, you’ll feel financially secure enough to stop working for good when the time finally comes. Here are five ways to get ready for retirement:
1. Start saving immediately.
This might be the most obvious step to a pleasant retirement. Take as much out of your paycheck as you can and put it into your retirement. GOBankingRates estimated earlier this year that a person might need to save more than one million dollars to retire with comfort.
2. Contribute to the savings plan that your employer offers.
If your employer provides a 401(k) plan, then contribute what you can. Find out about your workplace’s pension plan and whether you are covered by it. See what benefits you might have reaped from past jobs.
3. Plan ahead.
This might seem like an obvious step, but many people simply don’t plan ahead. Set realistic goals for your savings and calculate how much money you’ll need to live comfortably.
4. Factor in Social Security estimates.
Once you turn 62, you’ll be able to collect social security. Estimate what you’re likely to receive with the Retirement Planner on the Social Security website and factor the results into how much money you need to retire.
5. Do not touch your retirement savings.
You don’t want to have to go back to work after retirement. The money you save for this purpose is invaluable, not to mention that you could lose tax benefits. Don’t pull money from your retirement plan.
These are just five ways that you can begin to prepare for the rest of your life. If you have any questions about retirement, don’t hesitate to contact us.