Have you started planning your retirement? Well, it’s much better to prepare it as early as possible. Many people begin to work at the age of 16 or 18. However, at such young age, we don’t think about planning a retirement.
It seems unusual for someone to plan or save for it at an early age. Regardless of age, planning your retirement is crucial, and it’s not too early to begin it.
Save money for retirement
Those individuals that do not prepare for their retirement while working find it hard to survive without a job. They tend to look for other work even if they are retired to meet their needs.
- Common sources of retirement income
- Social Security
- Employer-sponsored retirement plans
- Personal savings and retirement investments
It’s crucial to keep money while working to secure an income for your retirement. The first two sources of retirement income may need more money than what they can offer. So the earlier you plan your retirement, the better your life will be.
Social Security benefits
It pays the regular individual about 40% of his pre-retirement salary. But this won’t be enough for many people.
Employer-sponsored plans
If your company manager offers a retirement plan, you have to find out what benefits you could get. Then, if you will change your work, observe what happens to your retirement funds and verify with your previous jobs to see the benefits you had from it.
Tips in planning your retirement
The first thing that you should do is to open a retirement account. Then, put a substantial percentage of your salaries in it every time you are paid. Your money will then earn interest over some time, and you can increase your earning stream for retirement.
Decide how much you will put into your account each month. And make sure you won’t spend your savings because you might lose tax benefits. Remember that retirement planning is an essential step to have a stable income after retirement.
Retirement Solutions, a leading firm of independent financial advisers (IFA), provides equity release schemes that give you the retirement you deserve. An equity release calculator helps you know how much you can release.
