Whether retirement is just around the corner or a few decades away, planning is key to a successful and enjoyable retirement. If you don’t yet have a plan, these tips will help you start one. If you happen to already have a plan, then read on because there may be something valuable that you can add to your list.
Retirement doesn’t just happen at a certain age like it did for our grandparents or great-grandparents where they worked a certain number of years, built up a pension, and then retired. Though life is different for us, retirement is possible. It just takes a bit of planning. Here are some tips to help you formulate a successful retirement or add to your existing plan:
Plan to live to age 100 (or longer).
Since we are living longer, it is safe to say that it’s possible that you could live this long. If you only plan to live until age 85 and base your retirement on this age but really live to age 100, your money will run out long before you do!
Save, save, save!
Then save, save, save some more. Saving money is never a detriment. Not having money when you need it, however, is. Each year until you retire, plan to invest in your company’s 401k plan, take out an IRA or Roth IRA, or do some type of saving that you can label “retirement” and not touch until that time.
Reduce or eliminate your debt.
In addition to saving, you’ll want to work on paying things off and this includes your mortgage. If your mortgage cannot be paid off before you plan to retire, consider a reverse mortgage at age 62 or older so you don’t have that monthly mortgage payment.
Expect the unexpected.
You may not need long-term care, but plan for it anyway. Medicare doesn’t cover these expenses and long-term care can exhaust your retirement savings quickly. Consider long-term care insurance before age 55 so it’s less expensive in the future. Sometimes life happens in way that we don’t expect!
Envision what you want your retirement to look like.
Will you move closer to your family members? Will you travel? Will you downsize your home or purchase a second home so you can be a snowbird? Once you have an idea of what you think you want in your retirement years, you can adjust your retirement plan to accommodate your desires.
Like preparing for a baby that is coming by getting the baby’s room ready, buying diapers, etc., retirement is easier when we simply plan for it. Having a plan is sure to make retirement an easier transition and lifestyle when the time comes!