By   May 1, 2017

A Guide to Retirement Planning

Looking forward to retirement was something which excited people a long time ago. You look forward to relaxing and enjoying yourself after working hard for decades. Today, as life expectancy and cost of living continues to rise, there a fewer people who can look forward to a trouble-free retirement. It has been established that one third of the population that are going on retirement has no personal savings that they can use in the future. Below are some tips for those who are soon to retire that will help reverse this troubling trend.

Government data shows that more than a third of Americans rely on social security as their primary source of income. Life has many unexpected events, and although social security can take care of our basic needs perhaps, it may not be enough for these events. If you don’t want to be caught with unexpected expenses, then it would be good to have some savings before you even reach retirement. Whatever amount you can save each month, keep it religiously, and keep the practice for many years. If you set aside money regularly , you will be surprise how much you can accumulate over the years.

You also need to reduce your spending, cut back without much sacrifice, even if you don’t have much extraneous spending. Think of ways that you can lower your monthly bills like getting a cheaper car or a cheaper health and life insurance. Check out your phone, internet, and cable fees. If you shop online, you can find many good deals, coupons and discounts on food items, clothes, and other things that you need.
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Participate in a 401k if your employer offers it. The savings potential for the 401k is greater than saving your money in a bank. Matching your contributions by your employer is also a possible option. Not every boss may be generous, but there are those that are.
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Having an IRA can work wonders. For most workers, a traditional IRA lets them make tax-deductible contributions. Until withdrawals are made later on, investment earnings can also grow tax-deferred. Roth IRAs are funded with after-tax contributions, allowing for tax-free earnings and withdrawals. You should speak to a retirement planning professions to find out what IRA is best for you because these accounts can be complex.

If you want to receive higher social security payments in the future, the best thing to do is to delay receiving it. Even if you only delay for a year or two after the earliest age you can start receiving benefits, or sixty two years old, you will get an increase in your monthly check. Some even defer payment up to age seventy so they will receive more income in the coming years. At age sixty seven or above, full retirement can already be drawn.

These steps can assure you of being prepared for your golden years.