Thinking About Retirement?
Whether you’re getting ready to retire, or you’re just getting ahead, here’s what you need to know.
As you look ahead to retirement, the idea of no longer working and earning income may have you asking a lot of questions about how to prepare for such an important change. But with the right amount of planning, life after work can be the life you’ve always wanted.
By making a plan now for what you want to accomplish after you retire, you can make the most of your retirement.
In fact, there are three basic steps that everyone can follow, regardless of their
income or wealth, to simplify the transition to retirement.
- Identify how much income you need each month to live similar to current lifestyle
- Determine your income sources (such as Social Security or pensions) and consider if it best to defer Social Security benefits, or in what order income sources should be used
- Plan for risks that may alter plan, or encouragement about attaining dream goals
Saving enough money to accommodate the lifestyle you desire, and the experiences you want to have is the chief concern of many people as they consider retirement. Most people feel confident they can retire comfortably…but they also haven’t done the calculations to know for sure.
Retiring Well: Important Spending and Saving Considerations
If you want to be confident you’ll have the means necessary to enjoy the experiences you’ve been planning after you stop working, you need to set and stick to a budget.
That’s right—after you are no longer earning income through work, your budget will become even more important. As long as you follow the three steps we identified to make your transition to retirement easy, this shouldn’t be a concern. However, all plans need to leave room for the unknown. What if you experience high healthcare costs, or live a longer life than anticipated? Budgeting is key, so be sure you have not only a budget plan to follow, but also the tools to track and monitor your progress.
Another important consideration is retirement age. As long as you enjoy your work and are physically able to continue working, it may be worth delaying retirement for a year or two to ensure you have the cash flow necessary to accommodate the unknown parts of your future. A failure to plan for longevity may increase doubt and anxiety about your financial security.
Retire with Peace of Mind
Your future financial security starts with a plan.
As the old proverb says, “The best time to plant a tree was twenty years ago. The second best time is now.” By educating yourself about your retirement cash flow now, you can set yourself up for success simply by
adjusting your expectations to match.
One of the best ways to ensure your financial goals are on track is to document them as part of a financial plan. With the right resources and expertise, the planning process can be simple. And technology available today can even enable you to monitor spending, track progress toward your goals, and evaluate your plan from the palm of your hand.