If you’re not sure where to even start when it comes to retirement savings, you’re not alone. Here are a few tips for current retirees to help you on your journey.
Social Security Has Limits
Most people assume their social security money will pay for everything. However, this is an incorrect assumption. An article written by Michael Keenan for gobankingrates.com explains, “Even if you expect Social Security to be around when you retire, it’s only intended to replace about 40 percent of your pre-retirement income if you are a medium earner. According to the Social Security Administration, the average monthly benefit for retired workers in 2018 is $1,404. Look for ways to supplement your income in retirement, so you’re not relying upon Social Security.”
Cost of Living Varies
Cost of living varies depending on where you plan to retire. Make sure you’re taking into account location when determining how much to save for retirement. You could choose to retire in an inexpensive state where the average amount it takes to retire is roughly $950k. On the other hand, if you choose to retire in Hawaii, it costs about $2.1 million. Monitor cost of living in your desired location in order to get the most accurate retirement information.
Create a Will/Trust
It’s important to get your death in order while you’re still alive. Talk to a lawyer to get your affairs in place. You need to designate beneficiaries for your possessions and decide who will be power of attorney should anything happen to you. While this might not be the most appealing task, it’s crucial. It can prevent family and legal drama for your loved ones down the road.
Have Conversations about Money
Having conversations about money with both your partner and your children are essential. You and your partner have to make sure you’re on the same page when it comes to your savings and retirement goals. Additionally, you must speak with your kids about money. Let them know you will be unavailable to help them with regular, monthly expenses. It can be hard to see your adult children struggle; however, you can’t put off your retirement in order to consistently offer financial relief to your kids. Doing so would be a disservice to yourself. It’s hard to predict what health issues might arise the older you get. Make sure you’re as prepared as possible to retire! This means prioritizing your money for your own needs.
Adopt Lifestyle Changes Now
Set yourself up now for a healthy retirement. Adopt lifestyle changes that include regular exercise, vitamins and nutrients, variety in your foods, and annual checkups with your doctor. Prioritizing your health now will help you enjoy as much of your retirement as you can. Take care of yourself!
Some of the best advice you’ll get about retirement comes from people who are already at the place you’re working towards. Implement this advice in order to prepare yourself as much as possible to retire.