Young people rarely think about, or plan for, retirement. This can be a huge mistake – the earlier you start planning for retirement, the better. What’s more, the later you start planning for retirement, the less you’ll be able to save, and chances are, the longer amount of time you will need to keep working.
Our experienced financial and retirement planning professionals at Harvest Financial Planning, LLC, can assist you in planning for your future. We help you find answers that work to myriad retirement questions, and put a plan in place that is customized for your needs.
The when of when you can realistically retire is a tough one, and a question that eludes many individuals and couples throughout Indiana. That being said, it is one of the most important questions you need to answer. When you can realistically retire will depend on how much money you have saved, as well as what your future expenses will look like.
Most people are stunned when they learn how much money they’ll need for retirement; it’s no light sum. Indeed, the typical advice is that you will need to replace between 70 and 90 percent of your pre-retirement income through your personal savings and Social Security, and then multiple this number by the number of years you expect to live after retiring. For example, if you currently make $100,000 per year, you could estimate needing about $80,000 in retirement. If you plan to retire at 65 and hope to live to 90, you’ll need 25 years’ worth of “income,” or about $2 million.
It is important to learn about the different types of retirement plans that are available and start saving for retirement now. Some of the basics are:
Some people may also benefit from a pension, and mutual funds and securities can be a wise investment choice to help you save for retirement. Investing in mutual funds involves risk, including possible loss of principal.
As you plan for retirement and think about how much money you’ll need, you should also remember to factor in how things like Social Security benefits and Medicare will affect your ability to retire comfortably. If you have worked and earned Social Security credits, you will be able to cash in on your benefits as early as age 62, although waiting until you reach your full retirement age (or beyond) is advised. Keep in mind that your healthcare costs may also be reduced, as you will be able to enroll in Medicare.
Retirement planning is a huge part of ensuring that you have a quality life after you stop working. It is never too early to start planning for retirement, regardless of your age or earnings.
At Harvest Financial Planning, LLC, we are here to help you to understand everything there is to know about retirement planning, and to create a customized retirement plan that works for you. Please contact our Schererville office today to schedule an appointment at 219-864-5050.
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