For those of you who don’t know, it was estimated that only forty-five percent of all people actually estimated the cost that it would take them to live at retirement age. This is a small percentage of people and it shows that a lot of people do not properly plan for their retirement earlier in their lives. Playing catch up once you reach fifty is a chore but it can be done.
Skip the mathematics of it all, if you were going to put in the mathematics you would have needed to have started earlier when you were still in your prime age. Mathematics helps to plan the retirement but now you are basically on a time limit with only a few more years to go and you need a way to catch everything up and to make the best of it.
Social Security will only pay forty percent of your lifetime earnings and it was estimated that you will need at least seventy percent of your lifetime earnings to live off of once you retire. Most people will live around eighteen years once they retire and this was estimated for someone who retired at the age of sixty-five. This means that you are going to have a lot of catching up to do.
If at all possible, delay your retirement but if you do this make sure to take out the minimum withdrawals from your retirement accounts that can charge a penalty at the age of seventy and a half years old. The longer you put off your retirement, the more that you will draw from social security and the more benefits that you will be able to get.
At the age that you finally realize that retirement is near, start putting as much money as you can into retirement plans and savings account. Because you can only get forty percent of your lifetime earnings from social security, you will need to make up the other thirty percent. Start taking money that you would normally spend on luxury items and add them into plans that will draw interest. Do not take the money out of any account until you reach the retirement age, doing so may cause you to loose money by penalties that a lot of companies charge.
If the company that you are working for will allow you to put money into their retirement plan and they will match up to a certain percentage or will add a certain percentage up to a certain amount, take advantage of this and put in the maximum that they will meet without it causing you to go into debt.
Whatever bills you have will need to be paid off. If you get a return in your taxes, pay off your debt with them. Creditors will usually charge you less interest for paying off early and this money can be used for retirement.
It is never too early to start planning for the future and if you are almost to the age of retirement, it is never too late to start saving.