In today’s economy, finances, wages, and retirement are at the forefront of everyone’s mind. So much of our every day effort is put towards securing our own and our family’s financial well being. However, the turbulent waters unemployment, downsizing companies, and shrinking retirement pensions have created force us to nag constantly to ourselves about money and our impending financial futures. While at one time retirement was a moment for celebration and relaxation, today retirement has become somewhat of a headache for the average U.S. worker. Some employees are being forced to retire early, others are losing any chance of retirement at all, and retirement pensions are being pillaged by suffocating employers. While things are no doubt difficult today, there are several steps you can take to ensure that you make the best of your retirement situation when that time does come.
Do Plan Early and Ahead of Time
Procrastinating with your retirement planning is one of the most detrimental things you can do. As recent grads just entering the working world, there is nothing further from our minds than our retirement pensions and plans. Focusing on getting the job, making a salary, earning a promotion, and staying alive in the cutthroat world of “the really world”, new grads have enough on their minds without thinking about what their finances will be like when they are fifty. While it is understandable that youngsters don’t have their retirement on their minds, it’s not exactly wise. To make the most of your retirement situation you must plan ahead and start early. On top of paying of student loans and making rent, you should put some thought into your 401(k) plan. Retirement can be a stressful and nerve-racking time in any individual’s life. In order to properly prepare for your retirement you must be proactive. Educate yourself on your company’s retirement plan and invest into a 401(k) early.
Do Retire at the Right Time in Your Life
While this isn’t always completely up to you, many times a person will retire too early and miss out on a lot of financial opportunities available to them had they stayed at their job longer. After working the same job for more than a decade, retirement can be very alluring. However, you should always be very careful with when you decide to retire. There are several things that you will need to consider before you retire. One of the most prominent issues retiring early can present involves the cost of healthcare. If you are under the age of 65, healthcare costs can be a huge challenge without the support of employer based health insurance. Private health insurance tends to be a very expensive option (especially for someone who is no longer earning a regular income). So, if you do not qualify for Medicare and you do not have health insurance through your employer, you can to consider the costs of healthcare in your retirement. Furthermore, Social Security is another thing that you should take into account as an individual retiring before you turn 65. Individuals starting on Social Security before they are over the age of 65 will not receive its full benefits. Holding out on retiring until you can qualify for full Social Security benefits and Medicare may be a very wise decision to make.
Do Plan Your Post Retirement Budget
Planning for your retirement includes planning for after your retirement. As one might imagine, with retirement comes a new way of living. You will have to adjust your everyday routine to suit unemployment and you will have to alter the way in which you spend and use your money. Many times, people will retire from their salaried positions, but continue to manage their money as if they have that same salary coming in. Obviously, this can be a concern. Before retiring, consider your spending and finances. Explore your personal savings and the amount of money you will truly be receiving from your retirement plan. Develop a budget for your retired life that is reasonable in that it’s not too far off from your usual way of living, but that is also conducive to the amount of actually money you have to spend. This process can be tricky. Any adjusting period is going to be a struggle. If you are able to carefully plan ahead for your retirement, you can make this transition seamless and effortless. Forethought is the key to a stress-free and more manageable future.
Stella Walker is a freelance writer enjoys writing about topics including credit, debt, investment, bankruptcy.