Depending on your age, retirement may feel very far away. In fact, it may not be something you’ve even thought about, let alone started saving for. But planning for retirement, even for those who are as young as in their 20s, is important. Here are four things to know about planning for retirement–
You’ll Probably Need More Money Than You Think
Think that you’ll be able to scrape by on a few thousand dollars a year of savings at the time that you retire because you’ll be getting Social Security benefits, your house will be paid off, and you won’t have any big expenses? Think again. Post-working years are some of the most unpredictable, especially when it comes to planning for health-related expenses. Indeed, experts calculate that the average retiree today will need over $1 million to make it through retirement confidently.1
Social Security Is Confusing
Another thing to think about is Social Security and the fact that while you may be counting on it to support you during your retirement years, you may be let down. Not only is there a full retirement age that a party must reach before they can begin collecting their full benefit amount (if you collect earlier than this, your benefits will be reduced), but the longevity of the Social Security fund is unclear, too. To be sure, while the Social Security Administration has enough saved to pay out benefits through 2035, benefits may be reduced after that as the administration will be tasked with paying out more contributions than it receives.
You Need to Start Saving NOW
The fact that you have years to save before you’re ready to retire isn’t a good excuse for not starting to save right now. Even if you’re not in your peak earning years and aren’t making much, putting away just a small amount every month is a smart idea. Depending on your income level, it may take decades for you to save up the amount of money that you need for retirement. With smart investments and strategies, you can watch your savings account start to grow now.
Working with a Professional Can Help
Planning for retirement is a large and multi-faceted process. And while there is no requirement to work with a financial professional along the way, doing so can be a serious aid and a smart use of your time. At Harvest Financial Planning, LLC, we offer comprehensive retirement planning services for customers throughout Indiana, and are here to answer any questions that you have about savings, how much you’ll need, when to claim Social Security, which investment options are suitable, and more today. To schedule a consultation with our experienced financial planners, please call us at 219-864-5050 today, or send us a message using the contact form found on our website.
1 – https://www.cnbc.com/2018/04/11/how-to-figure-out-how-much-money-you-need-to-retire.html