5 Tips On How To Prepare For Retirement
Would you believe that less than half of all Americans have sat down and calculated exactly how much money they will need to retire? While most people tend to see retirement as something that exists in a far off horizon, it tends to arrive much faster than we expect it to. Putting money to the side for retirement is a habit that everyone should embrace, so let's take a closer look at some tips that can help you prepare for retirement.
Start Saving Now
It could be something as simple as clipping Banggood coupons to save money at the supermarket or eliminating one night out per month. Anything that you can do to start saving money for your retirement now is highly recommended and it will help you to get a much needed jump on the process. Saving money is a good habit to start practicing at a young age, even if retirement is still a few decades away. Time has a funny way of slipping away from us faster than we expect...
Calculate Your Needs
Retirement is definitely expensive and those who have not taken the time to calculate their specific needs are often taken aback by the amount that they will need to comfortably enjoy their twilight years. Higher earners can survive retirement on about 70 percent of their income before they exit the workforce, while those who are on the lower end of the income spectrum will probably need 90 percent to maintain their customary standard of living. There's always also the option of saving a little more with Target coupons.
Contribute To Your 401K
For the most part, employers are more than willing to match any contribution that you make to your 401K account. Not only does this result in lower taxes, but it allows you to start saving from a young age, as opposed to waiting until the last minute. Be sure to speak to a company representative about their 401K accounts and how much you'll need to contribute to receive a matching donation. You could be leaving money on the table.
Consider Your Retirement Savings Untouchable
Don't withdraw from your retirement savings. Doing so can cost you in more ways than one and these repercussions can be far reaching. Spending your retirement savings early costs you large amounts of taxes and interest and you may also have to pay withdrawal penalties. Those who change jobs can simply roll their savings over to their new employer's retirement plan. If you need extra money, consider some new ways to earn.
Learn More About Social Security
Did you know that Social Security only supplies you with about 40 percent of what you were making before retirement? Learning more about the benefits you can reasonably expect to receive is important, so take a moment to visit the Social Security Administration's Website and find out more. The Motley Fool can teach you all about what you need to know when it comes to Social Security.