The decision to retire is a very personal one and should not be influenced by others. In order to take the steps necessary for a smooth retirement, however, it’s helpful to have a plan in mind.
The first step is to develop a financial strategy that will support your retirement lifestyle. You will need an accurate assessment of how much money you will need and how you can arrange to get that much. You may be able to live well off your retirement savings, supplemented by Social Security benefits, or you may find yourself in a situation where you will need to spend less than you did when working full time.
Whatever the situation is, it’s important to make plans early. Retirement financial planning is not difficult, but it will require you to make some sacrifices. Following are nine steps experts like Robert Nico Martinelli recommend that should help you plan your retirement.
1) Do Your Homework – You may be surprised at how little research has been done on the subject of retirement. When was the last time you actually did any fact-finding about the amount of money needed for your lifestyle and how you can save it?
2) Put Together a Budget – The truth is that most people spend more than they realize. If you know where your money goes, you will be able to determine if there’s enough left over for savings.
3) Adjust Your Expenditures – Most people assume that their lives will be completely different during their retirement years. While this is certainly true, it’s also possible to lower your current expenditures without having to sacrifice everything that you enjoy.
4) Be Willing To Adjust – If necessary, be willing to reduce your standard of living now in order to ensure the quality of life later on. For example, you might consider purchasing a less expensive home now that would allow for a simpler lifestyle during retirement. For most people, however, the biggest sacrifices are likely to be made in their current work activities.
5) Be Realistic – One of the more common mistakes is assuming that all your wants will be met once you retire. A more realistic approach — which will probably require some sacrifices — will help you plan for the future.
6) Prepare For The Unexpected – While your retirement plans may not cover every contingency, it’s good to know what you would do if something major happened. Preparing for the unexpected now can also help lower your risk of having to make sacrifices later on.
7) Know What You Got – When all is said and done, you will need to know exactly what you’ve got in savings, investments, pensions, and Social Security. Make sure that there are no gaps.
8) Be Prepared To Act – Retirement planning requires dedication. Some of your plans may take years to develop. However, by following the tips listed above, you should be able to come up with a plan that will help you meet all your retirement goals.
9) Know What You Need – It’s important that you take into account your retirement income sources, cost of living, age, and health. By knowing these factors, it will be possible for you to develop a plan that can help you meet all your goals in retirement.