According to a recent survey, 61% of Americans aged 50 and over are worried they won’t have enough money during their retirement. Also, only 21% stated they have a retirement plan to fund their golden years.
If you are worried about your financial security once you say goodbye to working life, you must perform various actions to reduce money worries. Here are four steps to take for a more comfortable retirement.
Step 1: Estimate Your Retirement Expenses
It is crucial to estimate your annual living expenses for your golden years. You will need to subtract your monthly outgoings from the income you will receive each month, such as from:
- Social security
- Pensions
- Retirement plans
It will allow you to identify any shortfall you will need to make up before you retire. Remember, you must factor in inflation increases and may need to pay additional expenses as a senior, such as medical bills.
For instance, you could cover the costs by increasing your savings or adding to your investment portfolio, ensuring you are financially comfortable on your chosen retirement date.
Step 2: Boost Your Retirement Savings
Your goal should be to boost your retirement savings before you retire. It doesn’t matter if you have a healthy pot or are playing catch up; you must aim to add more money into your account to live comfortably during your senior years.
For instance, if your employer provides a retirement plan with a company match, attempt to contribute the maximum amount, and the company will match the sum, helping to rapidly grow your nest egg.
Also, if you are a healthcare professional, a teacher, or work in the public sector or a non-profit organization, you are entitled to a claim double retirement contribution. Visit the IRS’s website for more information on the plans available.
Step 3: Talk to Experienced Financial Advisors
If you are eager to grow your wealth and enjoy a comfortable retirement, consult experienced financial advisors to make smarter decisions with your money. A customized retirement income plan will help you financially prepare for your golden years, as it will optimize your assets and taxes and minimize financial risks to prevent financial worries and support your desired lifestyle.
Step 4: Protect Your Retirement Income
Skilled financial advisors can help you protect your retirement income, ensuring you have as much money available to make the most of your senior years.
For instance, they may recommend taking control of your cash flow, such as spending less than you earn and reducing debt. Also, it is smart to create an emergency fund to cover the cost of unexpected bills, which will stop you from dipping into a retirement plan.
The last thing you will want is to worry about money once you retire. Ensure you enjoy every second of your senior years by carefully planning for retirement. There is no time like the present to start considering how much money you will need as a senior and taking the steps to grow your retirement income.
