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According to the Consumer Finances Survey done in 2019 in the US, most families had average retirement savings of slightly more than a quarter-million dollars. Still, the median retirement savings was close to $70,000. The survey also revealed that on average most people above 65 years had close to half a million dollars for retirement. Still, the median retirement savings were slightly over $150,000. These numbers indicate that most people are not saving enough for retirement.
The question I would undoubtedly like to ask you is, “are you saving enough for retirement?”. You might be young, and maybe this is your first job after college, but you know that as long as you are aging, then retirement is drawing near. In case you have not saved for retirement, then do not worry; I will show you some tips that will help you out.
Watch Your Investments Before Retirement
You need to adopt conservative investment strategies to avoid losing all your money as you near retirement. Working alongside a helpful financial advisor will help you know where to begin and how to maintain a good saving plan. Looking into retirement planning knoxville TN way, or wherever you might be located, as early as you can is a great way to get the ball rolling. If you are retiring in the next ten years or less, reduce overspending and save up as much as you can. Most conservative investments have a low return rate. Still, they will keep your money safe and avoid any risks associated with high return investments.
Plan for Inflation
Inflation is a reality you cannot ignore. The truth is that the purchasing power of a thousand dollars today will not be the same ten years down the line. So how do I tackle it? Adopt a savings habit with inflation in mind. Suppose you have more than 20 years before retirement. In that case, you can invest your investments in products that have an interest rate above the inflation rate.
Involve Your Spouse or Significant Other
Proper retirement planning needs transparency between you and your spouse. I want to have a great retirement and to achieve that, I need to have the same financial goals as my spouse so that we can make sacrifices now for a better retirement. Planning with my spouse also helps us develop a roadmap on how much we should spend on significant expenditures such as houses or cars.
Take Care of Your Health
Healthcare costs keep on rising, and I know as I age, the costs will only keep growing even in retirement. I take steps in maintaining my physical health because being fit will help me ward off some diseases in old age. As I take care of my health, I am also aware that old age increases my risks of certain conditions; thus, as I plan for retirement, I need to factor in health care expenses. If I do not prepare well, healthcare costs can wipe out a good portion or even all my savings.
Budget
A budget is critical for retirement planning. A budget shows you where your money is going and where you can trim expenses to increase your savings. I have a retirement budget based on my current expenses, and I use this figure to save for retirement. If you do not have a retirement budget, then you need to organize a meeting with a financial planner to help you come up with one. But sourcing a knowledgeable financial advisor can be a daunting task, given the fact that there are thousands of them. However, if you search for them online, you can get an idea regarding their work portfolio and reviews beforehand. For example, if you are from South Wales, U.K., you can search for Financial Advisor Cardiff online to find reputed financial planners who can help you out with your retirement budget.
Find a Good Investment Professional
Most people have a personal doctor who they call if they have any health issues. However, most people have no professional handling their finances. For a long time, I did not have a financial advisor because I thought I could manage without one. However, I made many mistakes since I handled my finances based on what I saw my parents and friends doing. After having a meeting with my financial advisor, I saw the errors that were holding me back in my finances. If you are not sure where you can find award winning financial advisors, you can ask your friends or relatives for a referral.
Handling the House
Mortgage payments consume a considerable part of our income every month. The last thing you want to do is to be making mortgage payments during retirement. I have increased my mortgage payments so that I pay off my house in the shortest time possible. This will free up money during my retirement and eliminate the stress of making monthly payments. Alternatively, some older people might want to consider giving up their home to move into a san francisco assisted living facility, for example. That sort of housing can provide necessary care for seniors who might need more assistance, whilst still living independently. That might be a better use of money. Having your own home as you get older can be a nuisance, especially when it comes to cleaning and bills.
