The Employee Benefit Research Institute reports that 54 percent of American workers have saved less than $25,000 for retirement and about a third of them feel that they will have enough for a comfortable retirement.
Is that realistic?
How much should you have saved?
What if you’re barely making ends meet now?
What can you expect from social security?
Can you afford long-term care?
If you’re still working and earning money, it’s not too late to get ready for retirement. In the end, it’s all about being smart with your money and paying some attention to how you use it, save it and where you hold it.
In this article, we’ll break down seven simple steps to help you get to a financially secure retirement plan:
- Calculate How Much Money You Will Need to Retire
- Saving Your Money
- Cutting Your Expenses
- Investing Your Money Wisely
- The Right Time for Social Security
- Pick Your Retirement Date
- Consider your Home
How Much Money Will You Need for a Financially Secure Retirement?
It’s a personal question that starts with understanding what your day-to-day expenses will be.
This is the magic question. How much will I need for a retirement income? It’s a personal question that starts with understanding what your day-to-day expenses will be. Remember: you will spend less on some things and may spend more on others. One of the first steps in planning for retirement is getting a handle on what your day-to-day expenses will be. Make note of fixed expenses like rent or mortgage (if you have any), pharmacy, groceries, utilities, insurance, and taxes. Then you have discretionary expenses like spending on gifts, clothing, entertainment, and travel. Remember that some expenses related to work can be reduced such as commute expenses.