If you are serious about enjoying retirement, you must begin planning for retirement now. The retirement plan should keep the following in mind.
First, make a review of your finances. You must know where you are as well as where you want to be and how you are going to get there. If deep in debt chances are you are not prepared for retirement. Your retirement plan must keep in mind that you will need 70% to 90% of your current income to maintain your present standard of living.
First think of what your retirement goals are. What does retirement mean to you? For some retirement is just sitting on the porch and watching the grandkids play. Their retirement plan will then be based on this factor. For some retirement means traveling to see the world. This involves considerable expenses. For some retirement comes somewhere in between these two extremes. Knowing what you want from retirement will give you an idea to make a retirement plan.
Live a healthy lifestyle now to enjoy retirement in the future. It may be the right time now to lose those extra pounds or to quit smoking. If you are not healthy and energetic when you retire, frugal spending and living habits won’t mean a thing. If your employer provides a retirement plan ask for an explanation of this plan. Find out if you can contribute something and if your employer provides matching funds.
Speak with your spouse about his/her retirement plan. See what benefits you might be entitled to receive. Thoroughly understand any consent forms or waivers you might be required to sign. The employer must regularly provide an individual benefit statement. This should show the amount that is owned by you. Thoroughly review this statement.
Opening an IRA might be a good idea. Almost all Americans can open an IRA if they have earned income. An IRA can be a Roth or a traditional IRA. Your bank can tell you how to open an IRA. Once opened contribute the maximum amount every year to the IRA.
Each year about 3 months before your birthday you should receive a social security statement. In making a retirement plan, review this each year.
If you are near retirement age, you will need to discuss retirement plans with your spouse. You might have different plans and need to make some sort of compromise. Your family must know your retirement plan as well as other long-term goals that affect them.
It is frustrating to have time and nothing to do with it. Think about what you want to do with your retirement. Whether you need life insurance or not in your retirement plan, it is a good idea to determine its benefits. This is true especially if your family would be left with huge debts or no source of income if you were to die.
See if you need long term care insurance. Though nobody likes to think about being with a major illness that can wipe out all savings, this is a possibility as you get older. So evaluate your need for long-term care insurance.
The above suggestions may not be able to prepare you for retirement fully. However, they are meant to help you make a retirement plan and retire peacefully.