World Executives Digest | Retirement Planning Made Easy: 3 Steps to Save | Retirement planning can seem intimidating at first but it can be simplified if you take it in steps. Learn the key steps to take here.
If you’re anything like most people, you want to retire at some point in the future.
Retirement packs several powerful benefits. After a lifetime of hard work and sweat, retirement is a time to kick back and relax. It’s the time to explore the world or live where you’ve always wanted to live.
Unfortunately, happy retirement isn’t guaranteed. In fact, you might not even be able to retire – unless you’re serious about your retirement planning right now.
In this article, we’re sharing a couple of tips that’ll help you save the money you need to have a quality retirement.
How Much Money Do You Need to Retire?
Just how much money do you need to retire?
The average American believes they need about $1.7 million to retire comfortably, but this might not be the case for you.
Retirement needs vary from person to person. There are a number of factors that will determine the amount of money you’ll need to retire.
For example, when do you want to retire? The average retirement age in the United States is 65, but it’s possible that you might want to retire sooner or a bit later. If you want to retire at, say 40, you’ll need a lot more money than someone who wants to retire at, say 68.
Another important factor is your lifestyle. In retirement, you want to maintain your quality of life. If you’re spending $50,000 a year today, you should keep the same expenditure in retirement.
Do a thorough assessment and determine the amount of money you need to retire.
Start Saving Early
Let’s face it: life in retirement is expensive. You need a substantial amount of money to be able to afford a good life in retirement.
You aren’t going to raise a big amount of money within a short time unless you want to put your entire income into a savings account.
The key to saving successfully for retirement is starting early. If you’re newly employed, now is the best time to start saving for retirement. Don’t assume that you still have several years ahead of you.
The earlier you start saving, the more money you’ll raise.
Be Creative with Your Savings Strategy
Putting some money into a savings account every month is the most common method of saving. It works, but you can only save so much.
This is why it’s important to get creative with your savings strategy. There are retirement-specific accounts that can help you get the most out of your savings.
An individual retirement account is a good example. This is a tax-advantaged account that holds your savings and investments.
You can also buy an annuity plan. This is an insurance product that’ll pay you in your retirement. What’s more companies like Rightway Funding can enable you to convert your annuity payments into a lump sum payment.
Proper Retirement Planning Is Important
You don’t want to work until you drop dead. You want to retire and enjoy an easy life, right?
You need to be serious about your retirement planning. This guide has fleshed out tips that’ll help you save, but there’s still a lot more to learn.
Keep reading our blog for more personal finance tips and insights.