When Should I Start Planning for Retirement?
by: Sound Credit Union
It’s never too early or too late to start thinking about planning for retirement. But depending on how near to or far from retirement you are, the decisions you’ll need to make and the choices you may have are very different. Figuring out how to live off your retirement savings is as much a personal issue as it is a financial decision. Your first step towards a successful retirement is to develop a strategy that will allow you to enjoy your retirement while minimizing the stress in worrying if you have enough saved.
Will I Have Enough?
According to a 2009 industry study, many pre-retirees haven’t clearly assessed how long their savings will last in retirement. Even more disconcerting is that they haven’t saved nearly enough to fund the retirement lifestyles they expect. The findings of the survey suggest that the savings habits of pre-retirees are insufficient to last for their expected 20 or more years in retirement. However, with preparation and careful planning, you may be able to avoid the pitfalls and start working toward a more secure retirement.
How Can I Prepare?
According to the survey, nearly two-thirds of respondents lack any formal plans for retirement savings or spending strategies. One way to help ensure a successful retirement is to follow a disciplined process that involves developing a written plan. Designing a plan involves gathering relevant financial information, setting life goals, and examining your current financial status. This compilation of information can be used to design a plan for how you can meet your financial goals. Once completed, your plan should be used to help make investment decisions that are in sync with your goals and personal risk tolerance. full article