Many people worry about whether they will have enough money in retirement to live comfortably and pursue the goals they set for themselves. If you are envious of what you are doing when it comes to retirement planning, here are four sure signs that you are on the right track.
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Are you on your way to retirement? Here’s how to know
1. You have drawn up a pension budget
It’s hard to know if you’re saving enough for retirement if you do not know what your seniors are likely to cost you. It helps to think about where you want to live in retirement, what type of house you want to own or rent, and how you intend to spend your days. Buying an apartment in a big city and spending three months of the year traveling will cost you a lot more than it will be to live in a modest apartment in a smaller city and spend most of your time enjoying local entertainment. . Think about what you want your seniors to look like and map out a budget so you can see what your annual income needs will mean.
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2. You have come up with a plan for applying for Social Security
Try when applying for Social Security is tricky. File too early, and you will reap your benefits for life. File too late, and you risk missing certain goals or opportunities because you waited so long to access that money. But anyway, it’s important to land on a decision, because that thickness will be how you see monthly benefits. And remember, unlike your retirement plan, the balance of which may fluctuate over time, depending on how you invest, the benefit you receive from Social Security is the same benefit you receive. guaranteeing life (not counting annual cost of living adjustments, of course).
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3. You have researched your health care costs
Health care is the only issue that tends not to catch on to seniors. While it is impossible to predict exactly what health care will be in store for you, Fidelity estimates that the average 65-year-old woman who is retired today can expect to spend $ 155,000 on it while retiring. average 65-year-old man can expect to spend $ 140,000. If your health is great, you may find that health care costs you a little less. If your health is poor, you can spend more. But anyway, it pays to do your research so that you understand how much money you need to allocate for taking care of your health.
4. You consistently save a respectable portion of your income
It used to be the case that setting 10% of your income in an IRA as 401 (k) would be enough to buy you a secure pension. No one. These days you are better off soaking up 15% to 20% of your income (or more) to make sure you are able to keep up with inflation and cover all your potential needs. If you are currently saving a smaller amount, percentage wise, then it may be time to look at your expenses and find ways to free up more money for your nest eggs.
The knowledge that you are looking for retirement allows you to buy the rest that so many older workers desire. If you do not think you are on the way to retirement, take steps to change that so that you do not want to be disappointed when your time in the workforce finally comes.
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