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Experts estimate you will need between 70 and 90 percent of your current monthly income to maintain the same standard of living when you retire.
2 . Consider the Kind of Retirement You Would Like to Have . Is it relaxing on the porch while you watch the grandkids play? Is it traveling? Knowing what you plan to do will give you an idea of what monthly retirement income you will need.
3 . Stay Healthy . You will want to be healthy when you retire so you can enjoy each day. Today is the time to lose the extra fat, start an exercise program, or quit smoking Your doctor can help you put a plan in place. It won’t matter how much you’ve saved if you don’t feel like getting out of bed when you retire. Not only that, medical problems can eat up a big portion of your retirement savings if you don’t take care of yourself.
4. Find Out What Your Employer and Your Spouse’s Employer Offer as a Retirement Plan . Ask for a description and an explanation of the plan available through your work if one is offered. Find out what you can contribute and if your employer contributes matching funds. Get copies of any consent forms that may be required. Make sure you receive an Individual Benefit Statement on a regular basis. All plans should provide one. We’ll talk more about this a little later.
5 . Open an Individual Retirement Account (IRA) . If you earn income or your spouse earns income, you can open an IRA, whether a traditional IRA or a Roth IRA. Your bank, credit union, or other finan- cial institution can tell you what is required and will help you with the process. If you open an IRA, do your best to contribute the maximum allowed each year. If you can’t contribute the maximum, even a small amount is better than no amount.
6 . Review Your Social Security Statement . Each year, the Social Security Administration sends out a statement that you should receive about three months before your birthday. This statement is a record of what you have earned and what you have paid in Social Security taxes
Financial Planning for Retirement