Parc Communities residents understand that when you’re young, retirement seems eons away. Before you know it, though, retirement will be upon you. The US Department of Labor estimates that the average American spends about 20 years in retirement, yet fewer than half of Americans have calculated how much they need to retire! Here is some retirement prep advice from Parc Communities’ residents that they offer their kids.
Learn about your employer’s retirement or pension plans.
If your employer has a retirement savings plans like a 401(k), join in and add all you can. This type of plan generally incurs less taxes and your company may even contribute! If your employer has a pension plan, see if you qualify and ask for an individual benefit statement to see what your benefit is worth. If you leave the company offering retirement plans, check to see what will happen to your benefit. If your spouse has a pension plan through his or her work, find out if you’re entitled to benefits from that plan.
Start saving early and continue saving, sticking to your goals.
The earlier you begin saving for retirement, the less you’ll have to worry about later. If you’re not saving, get started! If you’ve already started saving for retirement, stay on track. It’s easy to get distracted when big life events occur. The earlier you begin saving, the longer your money has to grow. Make retirement savings part of your monthly budget and stick to it like you would any other bill.
Learn what you need to retire.
Money experts estimate that retirees will need about 70 to 90% of their pre-retirement income in order to maintain their standard of living including housing, activities, healthcare, and more. There are calculators and charts online estimating what you’ll need for retirement based on your individual situation. If you’d feel more comfortable, consult an expert at your current bank for more specific advice.
Utilize basic investing knowledge.
Even if you’re a beginner, there are basic elements of finance knowledge that transfer between all types of investing. The types of investments you make along with inflation and other factors need to be taken into account when saving for retirement. Diversify your retirement investments, placing them in different types of accounts. This mix of investments can change based on different factors in your life like age, goals, and financial circumstances. We offer seniors advice on the financial picture behind our communities, including a value comparison worksheet outlining how Parc Communities can cost less than maintaining your old home.
There’s no single answer to retirement savings, but experience has taught Parc Communities and our residents that retirement savings is not something to be put off. Start early so you’re not left blindsided by unexpected retirement expenses. For the latest in retirement news and information, follow Parc Communities on Facebook and Twitter!