CREATE YOUR TIMELINE
At what age do you plan to stop working? How old are you now? The difference between these two ages equals the number of years you have to save for retirement, and that affects how you plan your savings.
DECIDE IF YOU’LL CONTINUE WORKING
For many people, retirement means slowing down, not coming to a full stop. If you plan to continue working part-time after your retirement, that extra income can help a lot in retirement.
ESTIMATE YOUR RETIREMENT WITHDRAWALS
How much money will you need to withdraw from your retirement account each year in order to live comfortably? Take the time to create a hypothetical retirement budget for yourself. Include any expenses you will continue to have like utilities, food, and entertainment.
ACCOUNT FOR LARGE PURCHASES
For some, retirement dreams are lofty and expensive. If you’ve been waiting until retirement to buy a boat and sail the world, you’re going to need more money set aside than your average retiree.
CUT YOUR EXPENSES
Even if retirement is years away, trimming back on your expenses now can mean bigger retirement accounts later. Look at your monthly budget and try to find a couple places where you can scale back your spending. Redirect that money into your retirement savings.
DITCH YOUR DEBT
The fees and interest rates associated with debt are going to slow your march toward retirement freedom. Prioritizing debt elimination is an important step in planning for your retirement.
MAINTAIN YOUR HEALTH
One of the biggest financial surprises in old age can be health complications and medical bills. Poor health can prevent you from working or lead you to empty bank accounts paying for prescriptions and costly doctor bills. As you invest financially for retirement, consider investing in your health as well.
