Ready to Retire? Follow These Steps
January 11, 2022
JANUARY 11, 2022: Finances are likely to be one of your biggest concerns if you are considering retirement. Most people worry about saving enough to be comfortable and maintain their current quality of life. One of the most important things you can do for yourself is to plan ahead and look at all the available options.
Your Retirement Strategy should include every aspect of your finances and future plans. Gather your financial papers and take stock of what you have. Consider where and how you want to live. Will your bills and expenses remain the same as they are now or do you anticipate a lot of changes? Check out these steps to secure a successful retirement.
Calculate What You Need
The key to a comfortable retirement is to know a general figure of how much money you need. You can calculate this yourself in a few steps using your age, annual income, and the current amount of your savings. Once you know where you are now, you can start to make changes to how you prepare for the future.
Start to Save
Analyze your budget and begin to put as much of your income aside as you can. Bulk up your savings account. You can also open a personal retirement account (IRA). Make sure you understand how taxes work with the type of IRA you choose.
Contribute to Employer Offered Plans
Part of your retirement strategy should be to build 401(k) or other employer-offered retirement plans. These are a great choice to put away some money because your contributions are normally pre-tax and you will also get contributions from your employer.
Learn About Your Pension Plan
Many employers offer a pension plan that you are vested in after a certain number of years of service. Ask about your company's policy and your own personal statement. Take a look at what you can expect to receive each month. When you can look at your financial portfolio and be confident in your ability to provide for your future, this is how you know you are ready to retire.
Invest
Another great way to build up your income and savings is by investing some of your money. Choose diverse options to minimize your risk and maximize returns. Your investments could bring you a lot of passive income in the future.
Understand Social Security Benefits and Requirements
If you have been in the workforce for most of your life, you probably qualify for some sort of Social Security benefit. Your monthly payment depends on a number of factors. Do your research and find out how much you can expect, and what the requirement are to qualify.
Everyone's finances and life circumstances are unique, so it's important to ask questions and gather the information you need to make the right decisions for your future. Start planning as soon as possible and focus your attention on the retirement plans that will most benefit your future.
About 1891 Financial Life
At 1891 Financial Life, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.