Start Your Retirement Planning: Follow These Steps
Retirement is a significant milestone in one’s life, representing a transition from a busy work life to a period of newfound freedom and exploration.
People often start thinking about retirement when they’re in their 50s or 60s. But it should start much earlier- when you begin working.
When you begin with the end in mind, you can be more intentional about where to put your hard-earned money. Read this post for a deep dive into the accumulation and decumulation phases of retirement planning.
In this article, we will discuss some key aspects of how to plan for retirement.
The Four Steps for Retirement Planning
Retirement is something we all look forward to, and work towards. Therefore planning is crucial to fully reap its benefits. Whether you are 10,15 or 20 years from retirement, the tips below can help you get ahead in your retirement planning.
Look at Your Current Spending
Take a close look at your current spending habits. Track your expenses, categorize them, and analyze where your money is going. This will give you a clear understanding of your financial patterns and areas where you can potentially cut back to save more for your retirement.
How Will You Spend in Retirement
Envision how you will spend during retirement. Think about the lifestyle you desire, your healthcare needs, and any potential travel or leisure activities. Having a clear vision of your retirement goals will help you estimate how much money you will need to sustain your desired lifestyle.
Take Stock of All Your Current Savings
Take stock of all your current savings. This includes any retirement accounts, investments, and other savings vehicles you may have. Assess the growth potential of these savings and evaluate if they align with your retirement goals.
Take advantage of our FREE tools and resources!
Here at Live With Dignity, we want to make it easy for you to access tools and information that can help you make sound decisions and live a life of dignity for many generations to come! Whether you are just starting out and still have many years ahead before retirement, or you are retiring in the next one to five years, you can find the right information for your situation.
Click here if you are still more than 10 years away from retirement.
Click here to learn why you CAN’T Rely on Your 401(k) Alone: A Wake-up Call
Click here if you are 5 to 10 years away from retirement.
Create a Plan to Meet Your Retirement Income Needs
Create a comprehensive plan to meet your retirement income needs. Calculate the gap between your projected retirement expenses and your current savings. Explore options such as contributing more to retirement accounts, exploring investment opportunities, and considering additional income streams.
Creating a solid plan will help you bridge that gap and ensure a comfortable retirement. Working with a Retirement Income Certified Professional RICP® can help tremendously in making sure your income needs are met.
In conclusion, planning for retirement should not start only when you are 5 to 10 years from your retirement date. It starts when you begin working.
But if you are in your 40s or 50s it becomes more crucial to seriously think about retirement. Retirement is going to creep up before you know it and it is best to plan for this important milestone.
While planning early gives you a greater advantage, it’s never too late to start. If you need personalized guidance and support in creating a retirement plan, book a call with us.
Sheilla Vidal is a Retirement Income Certified Professional RICP® and life insurance broker. Sheilla is also a physical therapist, wife, mother of two, and one of the caregivers for her 85-year-old father. She is an avid learner. She writes, speaks, and recognizes that her work in helping clients live with dignity is her God-given mission.
