Retirement Planning in Your 50s or 60s

retirement

Planning for your retirement when you are in your 50s or 60s doesn’t mean it’s too late, contrary to what many would think. But still, you should not delay it much longer. As soon as possible when the idea, especially the age, strikes, start making a plan. Procrastinating will never help you move along.

Below are steps on just how you can do it:

Think about when you will retire. For starters, use a life expectancy calculator. This is one way to help you estimate how much you will earn regarding your retirement. Do a calculation on how much you will need for your retirement income.

Make a ballpark figure of how much you will need for your retirement. Since most people aim for almost 80%, it is best to do it that way.

Cut out all that needless spending. Fancy cell phones, satellite cables or any type of luxury, try to avoid making unnecessary expenses. It is best that you put something aside for your savings.

Make sure you’re not being charged for things you did not ask for or are not receiving. One example: long-distance calls that you did not make. Examine your bills. This way, you get to save money on expenses you did not make.

Relieve yourself of debts. Pay your credit card bills to a minimum and avoid interests. Lessen your current expenses as much as possible. Owing credit card bills will only lessen your ability to gain enough for your retirement.

Know how much you can get from your Social Security savings. The benefits you will receive upon retirement will help you in saving for your retirement budget. Ask for the Social Security Administration if you wish to request for a statement.

Go for the 401k retirement plan. If that is what your employer is providing you, do sign up. After signing up, make enough contributions to this plan. Even if it is something that could be a match, go for it. Contributions will give you enough of what you need when retirement sets in.

Make sure that the things you have do not make you spend more. If you are living in a big house, consider selling it and settle for a small one. This way, you will have to spend less especially when it comes to facilities. In addition, it will help you save more on taxes and insurance.

Own an individual savings plan like the Roth IRA. People with jobs which provided them income, can make contributions for their spouse and themselves. See if you are eligible for one.

Consider having a second job or work longer in your current job before finally settling for retirement. Both of these options will help you save and gain more income. Call it your supplementary savings alternative.

Procrastinating will do you no good especially if the right time is now. All you have to do is plan your steps and make some progress out of it. Being successful lies in the fact that you want to have a better future for you and your family.

 

Posted by Ardent Editor on Oct 21 2008 in Retirement 101

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