Retirement takes a plan. Not only that, it takes determination. If you have been avoiding or neglecting your retirement, New Year’s might be the perfect time to start. Here are a few tips on how to start on your retirement resolution.
Retirement Resolution Tips & Tricks
Don’t worry about the date. It’s still early in the year. Plus, better late than never applies. If you haven’t read through these Retirement Myths yet, check them out before we get started. Let’s look at a few specific guidelines and tips from the pros to help you start crafting a solid retirement resolution.
List of Retirement Tips
- Many financial advisors suggest saving 12-15% of your income. You can build up to these amount by increasing it every year.
- Invest early and consistently. Compound interest is real, so take advantage of it. Perhaps encourage your kids to set up retirement accounts once they have graduated from college. Impress upon them the benefits of an earlier timeline.
- Always take your employer’s matching 401k contribution. It’s free money. Make it happen.
- Try to eliminate personal credit card debt before you contribute heavily to retirement. The more debt you eliminate, the more you will have free for retirement. Rather than costing you interest, retirement is gaining you money.
- Create and test a plan for your retirement. Think through when, where, how and more. Use these Retirement Calculators to help.
- Do not withdraw funds from your retirement.
- Social Security is only meant to supplement your income. Do not think it will cover your living expenses. It might be best to treat it as a bonus.
- There are some great Social Security benefits for those who start withdrawing. According to the Social Security Administration, “If you retire at full retirement age in 2017, your maximum benefit would be $2,687. However, if you retire at age 62 in 2017, your maximum benefit would be $2,153. If you retire at age 70 in 2017, your maximum benefit would be $3,538.”
- Make sure you and your partner are on the same page.
- Create a will and any other important documents to ensure your retirement accounts and all assets are taken care of in case of tragedy.
Don’t be caught off guard by retirement. Start planning, saving and investing now as part of your retirement resolution. Seek out the help of a financial planner for more insight into your specific needs. Check out these Retirement Steps for more information from ACCC.