Now is a good time to assess your readiness for retirement. It is likely that you will need to take specific steps to ensure a comfortable and enjoyable retirement. Use this checklist to help you determine where you stand.
Know your retirement number
Retirement planning is not a one-size-fits-all proposition. What is right for your parents or friends may not be the right plan for you.
One of the most key factors to consider when planning for retirement is how much money you will need to live comfortably. This number will vary depending on your lifestyle, what city you live in, and how long you plan to live after retirement.
But a good rule of thumb is that you will need about 70-80% of your pre-retirement income to maintain your current lifestyle. So, start by figuring out how much money you bring in each month and multiply that by 0.7 or 0.8 to get a ballpark number for your retirement fund.
Invest in yourself
One major step to take to be retirement ready is investing in yourself.
Think about it - if you are not taking the time to make sure you are in the best possible shape, both mentally and physically, how can you expect to enjoy your retirement?
There are a number of ways to invest in yourself, and it is important to find what works best for you. Maybe that means signing up for a cooking class so you can learn how to make your favorite dishes from scratch. Maybe it means starting a meditation habit so you can learn to relax and de-stress. Or maybe it means hiring a personal trainer so you can get into the best shape of your life.
The bottom line is that you need to take care of yourself if you want to be able to enjoy retirement. Investing in yourself is one of the best ways to do that.
Invest in a retirement plan
One of the most important things you can do for your retirement is to invest in a retirement plan. This will help ensure that you have enough money saved up to cover your costs once you stop working.
There are several types of retirement plans to choose from, so it is important to do your research and find the one that is best for you. Some popular retirement plans include 401(k)s, IRAs, and Roth IRAs.
If you are not sure how to get started or need help deciding which plan is right for you, consult with a financial advisor. They can help walk you through the process and make sure you are on the right track to a comfortable retirement.
Make catch-up contributions
Catch-up contributions are extra amounts of money that you can put into your retirement account if you are over fifty. This is a fantastic way to make up for lost time and can help you ensure that you have a comfortable retirement.
The maximum amount you can contribute each year is $6,000 for 401ks and IRAs. If you are behind on your retirement savings, try to make catch-up contributions each year to help make up the difference.
Consider working a little longer
One factor to consider is working a little longer. This could potentially help you save more money and give you a little more time to prepare.
Working a little longer also has other benefits, such as delaying Social Security and qualifying for Medicare. Plus, it can help keep your mind active and engaged.
If you are thinking of working a little longer, consult with your financial advisor to see if it makes sense for your specific situation.
Review your life insurance
One important thing to review is your life insurance policy. In case of an unexpected death, your loved ones will be taken care of financially.
You want to make sure that you have enough coverage to take care of your loved ones if something happens to you. Review your policy and make any necessary changes so that you feel confident that you and your family are fully taken care of.
Get your estate planning in order
One of the most important aspects of retirement planning is estate planning. This includes making sure your wishes are known in the event of your death, as well as setting up a will and other legal documents.
If you do not have an estate plan in place, it can be more difficult for your loved ones to conduct your wishes and can also lead to disputes among them. It is important to have these conversations with your family so everyone is on the same page.
If you do have an estate plan, be sure to review it regularly and update it as needed. You may also want to consider a trust, which can help manage your assets and provide tax benefits.
Meet with a financial advisor
If you are feeling overwhelmed or unsure of where to start when it comes to retirement planning, meeting with a financial advisor is a great step. Advisors can help you create a plan that is tailored specifically to your needs and financial situation. They can also help keep you on track as you work towards your retirement goals.
Everyone needs to take steps to be retirement ready, and this list can help you figure out where you stand. You may find that you need to update to be able to retire when you want to. Do not wait until it is too late – start planning now!