Calculating your retirement income is easy, but putting a plan into motion isn’t always. Here five smart strategies to help you kick-start saving for your retirementtoday.
Retirement can seem so far away. But the truth is it's never too early to start preparing for it. Here are some strategies on how you can calculate your retirement income properly so you have what you need when you retire:
5 smart strategies to help kick-start saving for retirement
1. Figure out your magic number
Knowing how much will be needed is imperative to making a successful retirement plan. Go to a website that offers a free online retirement calculator and see where you stand. That number is not concrete, but it will give you some idea of where you are.
2. Examine your saving habits
When you estimate your retirement income figure, make sure you look closely at how much you are saving. Most investors and financial gurus say to save in the neighbourhood of 20 per cent. This will provide for you nicely if you start saving early enough.
3. Set a goal—when do you want to retire?
Many more people these days are working longer and enjoying it. Some people work right up to the time they no longer can. It is very common to see folks working well into their seventies. If you plan to be a long-range worker, figure that into your calculations. Of course, you still need to plan on the fact that you might not be able to work that long.
4. Consider health care
One thing has become abundantly clear: government is not a guarantee where health care is concerned. You need to advocate for your own health and well-being in the retirement years. Spend some time looking at insurance and savings options that will ensure a solid health care program in the future. Your health is everything and particularly so during the retirement years.
5. Take into account taxes
Taxes are going to be there no matter what you do, so you might as well pay attention to it during your calculations. This is the most commonly overlooked area of retirement planning and it can be shocking to realize just how much they will take. Plan ahead by knowing the tax laws. Enlisting the help of a professional to fully understand your tax ramifications is often necessary and helpful if deciphering the specific details.
Follow these strategies, and calculating your retirement income so you can live comfortably won’t be nearly as difficult as you once imagined.
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