Unless you have plans to work the rest of your life, it is important you start planning for retirement as early as possible. By taking action now, you can work to ensure that when the time comes, you can retire without worrying that you will not be able to care for yourself. Here are some ways you can start planning today.
Get a Retirement Plan Analysis
Before you do anything else, get a retirement plan analysis. The analysis reviews your current income and retirement plans to determine whether or not changes need to be made.
If there are changes that need to be made to your current plans, they will be detailed in the report generated by the analyst. You can use the report to create a new plan for saving money towards retirement.
Establish Goals and Stick to Them
Now that you have a clearer picture of your financial future, you need to set financial goals. Depending on how much time you have until retirement, you might be able to start small with your goals. For instance, you might commit to saving at least five percent of your monthly pay.
Whatever goals you set, remember that just making the goals is not enough. You also need to stick to them. If necessary, give yourself rewards for reaching your goals. Make saving a priority now and it will pay off later.
Review Your Social Security Benefits
A portion of your retirement income will consist of Social Security benefits. Your benefits will pay a percentage of what you earn prior to retiring.
As part of your retirement planning, you need to get an estimate of what you can expect to receive from Social Security. The Social Security Administration can provide you with an estimate of what you will receive if you retire based on what you have paid up to this point. You can also estimate your benefits by visiting the agency's website.
Hire a Professional
If you have not already hired a financial planner to help manage your finances on a full-time basis, now would be a good time to do so. The planner provides an objective view of your financial situation and can provide input as time passes on what is and is not working.
Even if you only consult with the planner on an annual basis, it is worth it. If you are concerned with the fees, try to negotiate the fees before agreeing to the work.