Planning for retirement will make it less stressful.
Are you excited about retirement?
Or does the thought of retiring conjure emotions of fear and anxiety?
According to a recent The Motley Fool article titled “3 Ways to Approach Retirement More Confidently,” retirement does not need to be a trigger for anxiety.
You can make informed decisions and take action rather than merely dwelling on the unknown.
What should you do?
If you do not currently budget your monthly expenses, start now.
You should know how much you spend now to determine how much you will need for retirement.
You may also be able to reallocate some current funds to retirement savings.
Some expenses will decrease while others increase in retirement.
Remember to include things you enjoy as well as health care costs and taxes.
Do some research now to give you an accurate picture of unavoidable costs for health care and taxes later.
This will help you plan and save for your golden years.
Calculate your income used from retirement accounts.
You need to determine how much you will withdrawal as income monthly from your IRA or 401(k).
If the amount you have saved does not allow for the lifestyle you would like to enjoy, you will need to make other plans.
This could include working part-time in retirement or working a few more years to save more money.
Use Social Security Wisely.
Even if you diligently saved throughout your working years, Social Security will likely be necessary to pay some bills.
When you file has a significant effect on how much you will draw.
Waiting until Full Retirement Age will give you the full monthly benefit.
If you wait even longer until you turn 70, you will max out your monthly benefits through your delayed claiming.
Starting with these small, but important steps will help take some of the worry out of retirement.
They provide you with concrete tools to making your retirement more successful.
Working with an experienced financial advisor and estate planning attorney can also provide peace of mind as you prepare for new stages in life.
Reference: The Motley Fool (September 23, 2018) “3 Ways to Approach Retirement More Confidently.”