We all have the future goal of retiring. When our fast paced world will slow down and we can begin to take our time to enjoy the things we have not had the time to do before. Do you know when you will be able to retire? How much money will you have saved when you do retire? Success in this area of your life is going to be dependent on your ability to be proactive and plan ahead.
Your full retirement age and disbursement of Social Security benefits depends on when you were born. You can choose to retire early at 62, but your benefit amount monthly will be less because it is assumed you will receive benefits longer. Consider planning your retirement for your full retirement age to maximize your benefit amount. What is can your full retirement age? Find out by clicking here.
If you want to view your Social Security Statement which gives you access to your earnings record, estimates for retirement, and more, create your my social security account through the social security administration.
Most of us assume we will receive Social Security when we retire, but in the not too far future it is projected that there will be more people who are retired receiving social security benefits than those who are working and paying into the social security system. I’ll give you a second to ponder that thought…
Allow me to share some examples with you from the book “Money In Motion” from the American Center for Credit Education (ACCE) that will put the importance of planning for your retirement sooner rather than later into perspective.
- Person A begins saving at age 18 and saves $3,000.00 a year for 5 years. They save a total of $15,000.00. If they earn a return of 10% by age 65 their investment will grow to over $1 million dollars.
- Person B begins saving at age 28 and saves $3,000.00 a year for 10 years. They save a total of $30,000.00. If they earn a return of 10% by age 65 their investment will grow to $758,451.00.
- Person C begins saving at age 38 and saves $3,000.00 a year for 28 years. They save a total of $84,000.00. If they earn a return of 10% by age 65 their investment will grow to $442,893.00.
It is not my intent to make you feel that it is too late for you to start planning if you are older. Actually, if you are 50 or older, Congress has added a new Catch-Up Contribution option to retirement plans for individuals nearing retirement. Catch-Up contributions are possible in 401K, 403(b), 457 plans, and IRA’s. You can get more information about Catch-Up Contribution by talking with your Financial Advisor or visiting this link.
No matter your age or stage of life, your retirement is your responsibility, and the reality of your retirement will be the direct result of your planning.
Utilize the resources and options available to you, such as opening a savings account if you do not have one, and contributing to it regularly to get you in the habit of saving and learning to adjust your spending without the income. Your bank or financial institution may also have Investment Representatives that can assist you with questions and planning.
Start contributing to your employer’s retirement options like 401(k), 403(b), 457, pensions, etc. See if your employer offers matching with those options. Your employer’s retirement plan may have resources or tools that can help you understand your options. You may even want to consider opening up an Individual Retirement Account (IRA).
Apprisen has some great tools you can use online regarding retirement such as; How long will my retirement savings last? How much do I need to fund my retirement? How much can I spend each month in retirement?
Regardless of how you plan, the point is to plan, and start your plan as soon as possible. You are never too young or too old to start. You don’t have to be rich or have a large amount to get started, you just have to start.