Did you know that 64% of Americans are unprepared for their retirement? Retirement can creep up faster than most people plan for and for some people that means they don’t get the retirement they imagined. If you want the retirement you envision, it’s important to start preparing right now.
It’s never too early to start putting plans in place for the retirement you’ve worked so hard towards, but how do you do that? Here are a few tips on how to start preparing for retirement.
1. Tackle Your Debt
Paying your debt off gradually may not seem like a big thing right now but it could be huge in retirement. When you’re not earning the money you are right now, you won’t want large sums of your income going out into debt. Now is the best time to tackle your debt and reduce your retirement payments.
If you can clear your debt entirely in the next ten years, that’s even better.
2. Estimate Retirement Cost
It’s wise to start thinking about how much you’re likely to spend during your retirement. Think about the cost of your home, including mortgage and maintenance, along with regular monthly costs like food, clothing, and commuting. You may also want to factor in the cost of vacations if you plan on taking them in retirement. Some of the best retirement planning apps can help you organize all these factors, put together a budget and formulate a plan.
There may be a point when you want to move to luxury assisted living if you require it. It will give you the option to remain independent while having all the help you need. Add the cost of assisted living to your retirement costs.
3. Plan For Medical Expenses
Although your medical insurance is likely to cover the majority of your needs in retirement, there will always be unexpected costs when it comes to your healthcare. As we age, it’s inevitable for our health to deteriorate, so it’s vital to take health costs into account. Whether it’s medication, physical therapy, or even doctor-recommended sports classes, they all come at a cost.
Find out exactly what your health insurance covers and put money away for the things that could arise during retirement. It isn’t easy to plan for the unknown but having a savings pot could cover the blow just in case.
Viewing Retirement Differently
Making a retirement plan means firstly realizing that retirement isn’t a single development; it’s a whole era of your life. Just like any other season in your life, retirement can be an adventure as long as you’ve packed well. Along with a financial adjustment, retirement can also be a mental and emotional adjustment so it should be viewed as a beginning, rather than an ending.
Preparing for Retirement With Ease
Preparing for retirement can be tricky but there are lots you can do if you find it difficult. Talking to an accountant or visiting retirement facilities is a great way to find out more about the future.
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