People joke about the day they retire and imagine all the grand adventures they’ll have once they leave the workforce. But did you know that 1 in 3 adults in the United States has $0 saved for retirement? That translates to millions of people unprepared for their non-working years.
If you’re someone who has yet to begin preparing for retirement, the best time to get started is right now. Learn all about planning for retirement and how to start saving money for your future below.
Start Planning for Retirement Right Now with These 5 Critical Steps
The earlier you begin planning your retirement, the sooner you can start enjoying it. Start now with these 5 important steps.
1. Figure Out How You Want to Spend Your Retirement
The first step in preparation for retirement is to figure out how you want to spend it. Most people dream of the day they retire, so you likely have a vague idea of what you would like to do.
Write down all your goals from the most important to the least. Concentrate on very specific ideas and don’t worry about budget yet. Try to limit your list to 5 big goals and be practical.
2. Consider Your Assets
What assets will you take into retirement? This goes beyond your salary, current bank accounts, and any retirement accounts.
Consider any physical assets like antiques as well as your skill set. Many secondary skills or fun hobbies can transform into income after retiring.
What about non-traditional assets like a life insurance plan? Do you have one in place to care for your loved ones? Read more now to learn why this is a good investment for your future as well.
3. Pay Attention to Your Health
Your health plays a major role in your ability to enjoy retirement. Evaluating and maintaining your health now means a longer and healthier retirement. Schedule yearly checkups and focus on making healthy lifestyle choices with good eating, sleep, and exercise habits.
4. Decide When to Start Collecting Social Security
Obtaining complete financial freedom during retirement is a possibility, but not a guarantee. That’s where social security steps in to supplement your savings.
The longer you wait to get social security, the more you can collect later. You receive 100% of the benefits only if you wait until the legal retirement age. If you wait past this minimum, then you can even get delayed retirement credits up to age 70.
5. Create a Budget and Stick to It
Finally, you need to take account of your current finances and compare them to your retirement goal. Consider all income, debt, and investments you may have. Be sure you diversify your investments as much as possible.
Get a plan to get out of debt and minimize your expenses to save more. That doesn’t mean giving up all your favorite splurges, but limiting them so you can turn them into future splurges after you retire.
More Great Advice on Retirement Financial Planning
You should now feel a little more confident when thinking about planning for retirement. Every little bit you save now will help keep you secure later in life.
Want more great tips on how to prepare for retirement? Or how to save money in general? Check out the Thrifty Momma Ramblings’ blog today for tons of personal finance advice as well as awesome coupons and giveaways.