Retirement Planning: How to Do It Right
Why should you start planning for your retirement at an early age? Well, while this may sound too far-fetched for those who are in their 20's or 30's and even for those who are in their 40's, there are a lot of good reasons why you should start with your retirement planning as early as possible. Taking into account that most Americans are expected to spend at least 20 years in retirement, you should really give it some serious thought to make sure your retirement funds will last no matter how long you live.
6 Tips for Effective Retirement Planning
To make sure you enjoy a comfortable lifestyle all throughout your retirement years, here are some suggestions that you may find useful:
Make saving a habit
If you haven't started saving for your retirement yet, then this is the perfect time to do so. It doesn't matter if you can only manage to save a small portion of your income at the moment. What's more important is that you have taken the first step toward the right path. So, set a goal and stick with it!
Determine your retirement needs
Did you know that you need about 70% of your pre-retirement income to be able to spend your retirement years in the lifestyle that you have been accustomed to? This alone should give you more reasons why you need to start planning and saving for your retirement right now.
Learn about your employer's pension plan
Try to see if your employer offers a traditional pension plan. If he does, check if you are covered by the plan and take time to learn about the pension benefits  you stand to receive.
Contribute to your employer's retirement savings plan
Sign up for a retirement savings plan if such is being offered by your employer and try to contribute as much as you can. Do this and you can be sure that you will make significant amounts of money to build a comfortable retirement nest egg over time. Now, if your employer doesn't offer such plans, why don't you ask him to start one?
Open an IRA
If you have maxed out your 401(k) but still feel the need to save more for your retirement, then you should consider opening up an IRA . Start researching more about the best options available to make sure you get the most out of your money in the long run.
Learn everything you can about your Social Security benefits
To get an idea on how much you stand to receive, you can use the Retirement Estimator featured on the official Social Security website.
It pays to start your retirement planning early so you may want to do it sometime soon. Remember, your future pretty much depends on it.