How to Plan for Retirement Now
December 19, 2019
It’s never too early to start thinking about your retirement. If you’re really serious, it’s never too early to start planning and making moves to make sure your retirement is set to be financially comfortable. A good place to begin is thinking about what age you’d like to retire and what type of life you’d like to live during that period in time.
We’ve compiled a list of considerations to help you envision these years of your life. It may be helpful to jot down notes as you go through this list to further concretize how you’d like these years to look.
1. What age would you like to retire?
Retirement age is dependent upon a few different factors. In order to receive social security benefits at full retirement age, you’ll need to be at least 62 years old. Full retirement age is also affected by the year you were born as social security amendments have previously changed due to improved health conditions and longer lifespans. If you’re curious about your individual case for retirement age, consider using a retirement year calculator.
- How much money will you have?
If you’re hoping to retire sooner rather than later, you’ll want to keep a closer eye on your investments and monies sequestered for these later years.
- What is your target savings amount?
Consider your current cost of living and consider making changes accordingly to make sure the amount of money you have saved in your accounts and investments is sufficient for your intended cost of living.
Although retirement is usually relegated for your later years of life, some people make financial moves to retire earlier. Whatever you decide, think thoroughly about the type of life you want to live and how soon you’d like to live this life.
2. What would you like your life to look like?
What would you like to do in your retirement years? This is your time to start afresh, pursue your interests full time, travel, or reinvent yourself! Whatever your heart desires is possible with diligent planning and forethought.
As you decide what you plan on doing, make a detailed list of things you’d like to do and retirement hobbies you’d like to take up. Envisioning these adventures will help make them seem more possible. Even more, you’ll want to consider how to financially make your dreams reality, too.
For example, let’s say your dream is to rent an RV and galavant across the United States. You’ll want to consider the cost the RV, the duration of your trip, how many meals you’ll need as you travel, the cost of gas, whether you’re hoping to stay in lodging outside of your van and the costs associated with these, too. Get into the nitty-gritty of your retirement plans to make sure money is not a problem.
3. Are you retiring with someone or flying solo?
For some, retirement is a joint occasion. Perhaps you’re retiring with a spouse or partner? Maybe you’re retiring with a dependent? Regardless of your situation, you’ll want to take this into account if the person you’re retiring with depends on you for financial security.
Your spouse and/or dependents may be eligible for benefits should you (the retiree) meet requirements. This is something you’ll want to make efforts to look into as you concretize your retirement dreams
Your retirement years are what you make of them. Whether you’re looking to adventure to new landscapes or live more simply in a place where you can see the stars is up to you. Thoughtful planning can help make these dreams possible and it’s never too early to begin this work.
Interested in more alternative methods to save for retirement?
Then this post with tips is just for you! Don’t let traditional saving methods leave you bored, save whatever way suits you best—even if it’s unconventional.