People, many years ago, looked forward to the day they will retire. You look forward to relaxing and enjoying yourself after working hard for decades. Today, as life expectancy and cost of living continues to rise, there a fewer people who can look forward to a trouble-free retirement. It has been established that one third of the population that are going on retirement has no personal savings that they can use in the future. Below are some tips for those who are soon to retire that will help reverse this troubling trend.
You can see from government data that social security is the primary source of income for a third of Americans. The amount you receive from social security can help a lot, but if unexpected events occur, it may not be enough. If you don’t want to be caught with unexpected expenses, then it would be good to have some savings before you even reach retirement. Whatever amount you can save each month, keep it religiously, and keep the practice for many years. If you set aside money regularly , you will be surprise how much you can accumulate over the years.
You can add more to your savings if you cut back on your spending without sacrificing much. You can lower your monthly bills by getting a cheaper car, cheap health and Colorado Springs Life Insurance etc. Check out your phone, internet, and cable fees. Always search for ways to save online, whether you are shopping for food, clothes, or whatever supplies you may need, you can always find good deals on the internet.
If your employers offer 401k, it is good for you to join in. These plans offer greater savings potential than regular bank accounts. Your employer also has the option of matching your contributions. There are still generous bosses today.
Open an IRA. A traditional IRA lets them make tax-deductible contributions which are true for most workers. What’s more, investment warning can grow tax-deferred until you make withdrawals much later on. You can also avail of Roth IRAs which are funded with after-tax contributions; this allows for tax-free earnings and withdrawals. Since IRA accounts are rather complex, the best thing to do is to talk to a retirement planning professional to find out what IRA is best for you.
Delaying the receiving of your social security payments will assure you that you will receive more in the future. Even just a delay of one or two year after the earliest age you can start receiving benefits, it will still amount to an increase in your monthly payments. Some even defer payment up to age seventy so they will receive more income in the coming years. Presently, full retirement can be drawn at age sixty seven or above.
The Colorado Springs Retirement Planning tips above can help you prepare for your retirement years.