How to Prepare for Retirement

The concept of retirement is meant to invoke feelings of accomplishment and comfort. The average American who saves and plans ahead can enjoy a 20-year retirement. People dream of a nest egg waiting for them once they’ve reached the peak of their working lives, and the desire to settle in and enjoy a life at ease is universal. However, in today’s world of crippling debt, rising interest rates and a dubious economy on the decline, retirement seems more of a dream and less of a reality. In fact, to many it’s a source of stress and worry.

Recent studies show that below 50% of Americans have begun to calculate how much is needed for their retirement. Additionally, one-fourth of Americans claim that they are not confident in their ability to save enough for their own retirement. Although budgeting and planning for retirement can seem burdensome and in some cases even scary, here are three basic and proven methods to give yourself peace of mind when planning for your future and the future of your loved ones.

Begin Saving Now

The first tip to planning for your financial future is the most obvious and it’s also the easiest. You need to get in the habit of saving today, regardless of your budget or situation. Every little bit counts towards your goal, and in time, you can work towards increasing the amount you can save. Remember, whatever you forego today in setting aside funds is an investment towards your future retirement. It’s a good idea to sit down and make a savings plan that your income would allow without putting a strain on your current financial needs. Also, remember that while any money you’ve put aside is yours you can’t touch it.

Debt Management

The most significant cause of stress with regards to the topic of retirement is debt. About a fifth of the American workforce says that debt is a major concern. It’s for this reason that many Americans fear that they’ll never be able to rise above it and reach their savings goals, and it’s also a reason that so many don’t even begin planning in the first place. Debt isn’t only a financial status, it can also become a state of mind as well. By first addressing and then working to diminish debt, working towards your goal of retirement can be done even if you have some red on your ledger.

See Your Employer’s Savings Plan

Many companies offer their employees a 401(K) savings plan. It’s in your best interest to apply and contribute as much as possible. The more you put in, the more your company is willing to match. The option of automatic deductions from your wages is an easy way to keep this going while sticking to your budget. If you’re not participating in the 401(K) savings plan at your work, ask about it and get started soon. If one isn’t already offered by your employer, see about getting one started and how you can help.

Though daunting at first, planning for your retirement is every bit the reality as you want it to be. While saving, managing debt and contributing to your employer’s 401(K) plan are all invaluable ways to reach your goal, there are always more options to help secure your financial future. Never underestimate the value of asking your peers for advice, researching other methods that may better suit your needs and consulting a financial specialist. It’s never too early to begin planning for the future.

Contact Us

When preparing for retirement, the law office of Andrew M. Lamkin, PC stands ready to help. Contact them today at 516-605-0625 to set up a consultation appointment!

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