Retirement is one of life’s chapters most of us look forward to, especially as we age. The more you prepare for that chapter now, the more you can enjoy it when the time comes. With effective planning and true commitment, you can prepare for changes to your income and lifestyle leading up to retirement. Read on for tips to consider as you think about what you want your future years to look like.
Save!
Financial security is the foundation of a stress-free retirement. According to the U.S. Department of Labor, you will need between 70% and 90% of your pre-retirement income to maintain your lifestyle once you stop working. A common way to make that happen is by consistently saving a portion of your income until you are ready to retire. Many people who work often do this through their employer’s retirement savings plan, such as a 401(k). A 401(k) is an individual account set up and managed by employers. When you sign up for this account, a percentage of your paychecks will be deposited into it and, in some cases, payments may be matched by your employer. Some banks, credit unions, and local community programs also offer free personal finance counseling services, like budget planning, to help you manage your money for any life events you want to prepare for, no matter what financial or personal stage you are in.
Think about the future you want
What does retirement look like to you? Maybe you have hopes of spending more time with family, working part-time, or pursuing a new passion like volunteering. Depending on the future you want and the age you plan to retire, it’s a good idea to start making decisions now – especially with your finances – that will better allow you to achieve your goals. According to Forbes, studies show that you’re more likely to achieve the retirement you want by setting retirement goals and taking steps to achieve them. It may be helpful to start thinking about important future plans, like whether you will be living in your current home or a housing community for older adults (eligibility for some communities may be based on income), and determine how much you should save for those plans. Also consider other financial options and resources available to you that can help your money grow, such as possible investment opportunities.
Social security benefits
Social security retirement benefits are not meant to be your only source of income during retirement. However, they are a great option to supplement your saved income. According to the Social Security Administration, retirement benefits replace 40% of pre-retirement income for beneficiaries on average. This can vary for each individual depending on your earnings and the age you choose to start receiving benefits. Check out My Place CT’s webpage on Supplemental Security Income (SSI) for more information on benefits eligibility and how to apply for them.
Stay on top of health needs
Being in good health is one of the best ways to get the most out of your retirement, and life overall. That’s why consistently caring for your physical, mental, and emotional needs is so important. Positive social interactions, exercise, eating healthy foods, and getting enough sleep are just a few ways you can practice holistic health, which is care that focuses on all aspects of your well-being. Be sure to also schedule your checkups, preventive exams, and properly manage medications you may be taking. At each appointment, whether you’re meeting with your primary care doctor or dentist, discuss a plan with your provider to help better or maintain your health. It can also be easier to access and afford the health services you need by enrolling in a health insurance plan, like Medicare which covers individuals aged 65 years or older or permanently disabled, regardless of income. For more information and tips to help you save on your Medicare plan, check out My Place CT’s blog to Ways to Spend Less and Get the Most Out of Medicare.
