Search:

Retirement Is Coming Sooner Than You Think

If your idea of planning for your senior years is playing the lotto, it is time for a reality check. Those years are going to be here before you know it. Here are some retirement planning facts and tips to prime the pump for you.

It doesn't matter if the money goes into a 401(k) plan, an IRA or into a plain, old-fashioned savings account, just start saving.

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it, and set goals for yourself.

Women represent 58 percent of all Social Security beneficiaries age 62 and older and approximately 71 percent of all beneficiaries age 85 and older.

If you can, consider working a few extra years after your retirement age. It can make all the difference in your retirement income.

Social Security pays the average retiree about 40 percent of pre-retirement earnings.

On average, a female retiring at age 65 can expect to live another 20 years, 3 years longer than a man retiring at the same age. Savings can increase a woman's chances of having enough money to last during her retirement.

To get equity out of your home, you might consider a reverse mortgage. Don't! They are bad deals. Talk with a financial planner about other alternatives that make more sense.

Earnings compound over time, so start investing as soon as humanely possible. This is true even if the amount you are saving is small.

Consider moving when you retire. If you love in a location with a high cost of living, moving to a lower cost area such as Florida can make a big difference.

Select a target date for your retirement. Now assume you will need 70 percent of your current salary to live comfortably on that date. How much money will you need for 18 years of retirement and where will it come from?

If your employer offers 401k plans, try to maximize your contribution. This is particularly true if they match your contributions in any way.

Retire to a warm, dry location. Areas such as Las Vegas tend to have fewer pollens and pollutants in the air, which is good for your health. Good health equals lower medical bills.

Predicting health is never easy, but it is vital to know that the government will liquidate certain of your assets to pay for medical bills it incurs in caring for you. Make sure you understand this and pay for it.

Some 51% of Americans age 55 and older have saved less than $100,000. Some 28% have saved $250,000 or more.

When is it too late to start saving for retirement? It never is. People starting at 50 can still save a lot of money.

Do you have enough money to retire comfortably? You will never know for sure, so you need to save more than you expect to need. The difference between living on a couple thousand dollars a month and five times that is huge.