Did you know that over half of Americans have nothing at all saved for retirement? And, that the vast majority have only $1000 or less saved?
These statistics are truly alarming and prove just how important it is to start saving for your retirement early.
If you’re someone who has actually taken the time to save for your retirement- then pat yourself on the back. You’re way ahead of most people!
But, preparing for your retirement isn’t just about saving money. It’s about figuring out what you’re going to do with this next chapter of your life.
Check out this guide to discover the top secrets for preparing for retirement so that you can enjoy the next chapter of your life.
1. Go in With Enough Savings
To set yourself up for a happy retirement, the first thing you want to do is ensure that you have enough savings.
The last thing you want is to blow through your retirement money in a few years, only to find out that you now have to go back to work.
As a general rule, you’ll want to save about 80 percent of your pre-retirement income to live comfortably during your golden years. So, if you make $100,000 per year, you’ll want about $80,000 per year for each year of retirement.
Of course, some of that income can come from Social Security, and many retirees find it fun to pick up a part-time or seasonal job to stave off boredom. But, the rest needs to come from you.
If you’re not where you need to be for your retirement savings, you may want to consider hiring a retirement coach to help you get there, like the ones from Retirement Wisdom.
2. Boost Your Social Security Benefits
Even if you save well for your retirement, there’s still a good chance that you’re going to be partially dependent on Social Security for income during your golden years.
So, the more you’re able to boost your benefits, the better.
For starters, avoid taking out benefits before your full retirement age, as this results in automatic deductions.
Also, you can delay your benefits past your full retirement age if you don’t need them right away, in which case you’ll get 8 percent more a year until the age of 70.
Say, for example, you were supposed to receive monthly benefits of $2000 starting at the age of 67. If you wait until you’re 70, you’ll get monthly benefits of $2480.
3. Know How You’re Going to Spend Your Days
Going from a full-time work schedule to a completely open schedule can be jarring.
That’s why it’s very important to have an idea of how you’re going to fill your days. Here are some ways you can fill your time in retirement:
- Get a laid-back part-time job
- Take care of and spend time with your grandkids
- Get a pet
- Pick up a new hobby
- Learn something new- a language, an instrument, etc
- Join the gym
- Join a senior group to socialize more
However you decide to fill your days, try to have a schedule in place, as this can help prevent you from feeling aimless. For example, maybe you’ll golf on Mondays, work a part-time job on Tuesday and Wednesday, and take care of the grandkids on Thursday and Friday.
Preparing for Retirement: Are You Ready?
Now that you have these tips on preparing for retirement, it’s time to get started.
Before you know it, your golden years will be here.
Also, if you liked this post, be sure to check back in for more retirement planning tips and tricks.