5 Steps for a Better Retirement
Do you worry about your retirement? According to experts, you should be worried. A Government Accountability Office analysis found that average Americans between the ages of 55 and 64 have saved about $104,000 in retirement savings.
If that sounds like a good amount, think again. That sum would translate into a mere $310 monthly payment if your money were invested in a lifetime annuity.
Even if you’re in the younger age brackets, this should serve as a loud wake-up call and hopefully inspire you to take a more proactive approach toward your retirement fund. Here are some tips to do just that:
The longer you save, the better off you will be. Compound interest over time is what does the trick, and the more time you have to let it work, the better.
If you are already in your 50s, make this a financial priority. Start right now. Delay spending on non-essential items, and put away as much as you possibly can. If you are employed, contribute to your employer’s retirement plan. If you are self-employed, set up an IRA.
Find out how much Social Security you will be eligible for when you reach retirement age. Ask for the number at 65 and at 70. You may have to delay taking your benefits so that you get a little more.
Figure out your retirement expenses. Be realistic. If you won’t be able to maintain your current lifestyle, start thinking about alternatives that could still give you a comfortable retirement but would be much more affordable. The 2015 Forbes list of the 25 best places to retire has some very attractive options.
If there is still a shortfall between your projected retirement income and expenses, start looking at other sources of income you can generate after you reach retirement age. Some famous people did not start their successful careers until well after the age of 55. However, be vigilant, and do your due diligence when evaluating a new business opportunity.
That old saying, “better late than never,” applies to your retirement planning. Figure it out now, so that you can look forward to a comfortable retirement when the time comes.
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