The age of retirement used to hover around 65 years. This no longer holds true for today. As more and more of the Baby Boom generation enters their senior years, retirement has changed. Seniors now have much different expectations than the generation that retired before them. Yet for many entering retirement their understanding of the senior living options available to them, the benefits they are entitled to, and what to expect from their retirement lifestyle may be outdated. Whether you’re looking forward to exiting the workforce right around 65 or you plan to work a few extra years, it’s never too late to learn how to plan for retirement.
Yet, it can be daunting planning for retirement on your own. There is a lot of information available, yet sifting through all the information turns a lot of individuals away. Fortunately, SeniorSmart is here to assist you and your family. We can walk you through some basic steps for planning your retirement. You might find that not all the steps listed below apply to you, and that’s okay. These steps are designed to give you a starting point for planning your retirement.
Are You Ready to Retire?
If you work for a company that offers retirement when employees turn 65, take careful stock regarding the decision. Of course, if you’re like most people, you take home more than just a paycheck from your employer.
Working a few more years can provide you with a more robust retirement fund. It can also continue to provide you with the psychological benefits that most people obtain from their jobs as well.
Determine the length of the process your company follows. Some require a year or more to complete all the steps.
If you aren’t ready to retire yet, discuss terms for staying with your employer. Consider part-time work or consulting instead of staying on full-time if your employer resists.
When Is the Right Time to Take Social Security?
Most people count on social security as part of their retirement. When learning how to plan for retirement, it can be tricky to figure out the right time to start drawing these benefits. If you were born in 1937 or earlier, you could receive full retirement benefits beginning when you turn 65.
The age you can take social security then increases according to when you were born. For example, if you were born between 1943 and 1954, your full retirement age is 66. Anyone who was born in 1960 or later must wait until they are 67 years old before they can receive their full social security benefits.
If possible, delay applying for social security until you are 70 years of age. Doing so will allow you to obtain the maximum benefits possible. Waiting longer than that won’t increase your benefits, though. If your health is good and you can afford to do so financially, waiting to collect social security until you’re 70 will put more money in your pocket.
Do You Have a Retirement Budget?
Creating a budget can give you a clearer picture when it comes to learning how to plan for retirement. It’s natural to want to spend more time doing all those things you love but never had time to do while you were working. Budgeting for these expenses now can help you keep tabs on spending so you don/t burn through your retirement fund too quickly.
Some expenses, such as those for lunches out and work clothes, will drop once you retire. In other areas, like travel, you might see an increase.
Going through the steps above can position you for a fun and relaxing retirement. Just be sure to leave yourself with a cushion to fall back on in case the unexpected happens.