To be financially secure by the time you retire requires some planning. It won’t just happen. Over half of people in employment today have indicated they plan to work in their retirement. 35 percent of them cite insufficient retirement savings as the reason.
With the average person in large economies such as America spending two decades in retirement and only around 40 percent of working people have calculated what they need for retirement, you definitely need to kick off your retirement journey right away. It’s never too early to start.
Saving and keeping at it is the key
If there was a key to successful retirement it has to be saving and sticking to goals already set. If you haven’t started saving anything, even for a future project let alone retirement, start now. In just a few months of savings you will learn how rewarding a habit it is. Don’t rush into it; start small and keep raising the amount every month. Starting early allows you to have substantial savings with sufficient time to grow. The key here is to start setting aside some amount for your future.
Start a side business if you must
It’s possible your salary doesn’t leave much for your retirement, especially if you intend to live a better and comfortable life after retiring. An easy and quick way of investing for the future is starting a business. If you cannot, a business selling platform such as Exit Adviser lists hundreds of businesses up for sale across North America, Europe and around the world.
Owning a business that’s already running and making money mean you should be making some good profit very fast. Even better, if you have no intention of retiring and want to keep working, you could purchase a business in the last few years before retirement and fully immerse yourself in it after you leave.
Do you know what you need for your retirement?
Clearly, you can’t expect retirement to be inexpensive and easy without proper savings. Most financial experts approximate that to live a quality life you’ll need a minimum 70-90 percent of the amount you currently earn. As such, you don’t really have a lot of time to waste. Begin securing your future right away by planning carefully today.
Don’t ignore retirement plans already available
If you’re employed your employer probably has a savings plan for retirement, perhaps a 401(k) type of plan. Whatever it’s, contribute to it as much as you can. In most cases, the taxes are really low and the employer could support you with a little more. As you’re automatically deducted, signing up and keeping at it won’t be too hard. Due to tax rearrangements and compound interest, the accumulated income will be substantial by the time you’re retiring.
Stay informed as much as possible about the plan and the contributions required to get the whole contribution. Do know how long you’re required to remain in the employer retirement plan to benefit from it.
Understand your pension plan
The same case applies for a pension plan by your employer. Know whether you’re already in the pension and how it works. Also know if you were to change employers how the pension benefit will be affected, including benefits available, if any, from a past employer. What about your spouse, does his/her plan entitle you to any benefit? Do learn as soon as possible to prepare accordingly.
Retirement planning is very important for everyone, including the self-employed. A time will come when you’ll have to slow down, work less and still want to live a quiet, comfortable life. Such a life doesn’t come cheap or easy. Kick off your retirement journey today if you haven’t already by coming up with a detailed plan and strategy and keep at it.