You can always reduce your savings rate later. Unless you have a good pension plus Social Security, it’s mostly up to you-and there are no second chances.ħ. Save as much as possible as soon as possible. A missed deadline and any number of other goofs can do severe financial damage.Ħ. Put retirement savings ahead of other goals, like college or a vacation home. And remember, when it comes to the fun stuff, that takes money.ĥ. Pay attention to communications from your employer, Social Security, Medicare, personal advisers and others. It’s a big mistake to think of retirement purely as leisure time. Think about any significant relocation long before you retire-and consider trying it out first. Income annuities, investment income streams and life insurance might all be part of that plan.Ĥ. Never forget the non-financial aspects of your retirement are important, too. 3. Have a financial and estate plan that provides for your spouse and any others who depend on you financially-and who may outlive you. But recognize that it’s intended to be a minor part of your total income. In retirement, you’ll want some steady sources of income, and Social Security is probably the most secure. If not, retirement could mean a sharp drop in living standards.Ģ. Remember that Social Security is designed to replace no more than 40% of preretirement income-and for many, that 40% is an overestimate, because the benefit calculation is skewed toward lower income Americans. Ultimately, the choice is yours on what retirement looks like to you.ġ. If your preretirement lifestyle is set with a view to what you can sustain after you quit the workforce, you’re likely on track. Some people set themselves for it up sooner and some later. I read a long time ago that when you save or invest your "younger self" is setting up your "older self" for success and that concept stuck with me. You never know when your perspective on life ( YOLO) will change, when you spark a new passion, or even when you have outgrown your current employment so it is good to have options for if/when those things happen! I have no desire to retire right now, however I want to know that I am giving myself options for later on in my life. That quote sums up my view on retirement because I enjoy working, find meaning in what I do, and truly feel like I bring a strong value and purpose to those I work with (colleagues) and for (my students). With that being said, the one commonality is that "every person should live the life they want and not a life they feel they are forced to live." Retirement is completely different for each person because of how people view and perceive work, money, and time. I am sure your vision of retirement and my vision of retirement aren't the same.
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