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When Is it Time to Start Thinking about Retirement?

Tuesday, December 27th, 2016 by Mike


Recent days have seen money grow very tight for many people. Those who had been prospering for a long time suddenly found that the world had changed. Now it was not only not an easy thing to get money, but saving it had become almost impossible for many – and still is for some. While retirement may still be a long way off for some, there now is a new reason why it is necessary to start early.

Saving Money for Retirement Requires Planning

If your retirement is not serious enough to plan for ahead of time, then you cannot expect to be comfortable when it does come. This means that a serious look needs to be taken of your own retirement, and calculations need to be made, followed by adequate preparation for it.

Those who retire and are able to enjoy some things that they always wanted to do after retirement made sure that they had some form of retirement savings in advance. Reaching retirement age should be looked at as an accomplishment and not something to dread, or fear.

Retirement Planning Requires Quality Investing Instruments

There are a number of tools available today to help you accumulate a good retirement savings amount, so that you do not have to rely entirely on social security. Your employer may have some plans in place such as a 401k retirement, or an IRA. One of the best ways to go is if your employer will match funds with you. If so, this is a tremendous way to save for retirement, and you will want to take advantage of it.

Both of these instruments will give you tax deductible benefits to help you save even more money. Tax deductions enable you to pay less on income taxes. Another instrument which will work well if you are rather healthy is a Health Savings Account (HSA), which also gives you tax deductions on money put into the account. All money that is used for medical purposes is tax free, and you keep control of the account.

Retirement Income Determines Future Comfort Level

It is important to realize that things are different today than they used to be – in several ways. For one thing, people are now living longer than before. Most people alive today will probably live to be about 80. This means a longer retirement than your grandparents had which also means more money is needed. Another thing that is different is the cost of living these days. Medical care, and especially long-term care, and things needed to just get by are more expensive.

In order to set money aside, though, it will also be necessary to pay down your debt. This will enable you to put more into a retirement account, and it will also enable you to enter retirement debt free. Interest on credit card debt is really eating away at money that could and should be invested in your future. Reduce that debt quickly.

Start Your Retirement Savings Now

There really is no better time to save money for your retirement than now. Study the various tools that can be used and also how much you will need. Then, start putting money into it and be sure to take advantage of any tax breaks, too. Because of potential problems with some retirement accounts, stocks, and other investments, be sure to put your eggs in more than one basket and diversify.

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3 Responses to When Is it Time to Start Thinking about Retirement?

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  2. Sam says:

    Fully love this post – completely agree with the fact that I need to start saving today – the only problem is it’s just so dam hard to even think about saving for retirement when you’ve first got a house to buy, a student loan to pay off and you’re struggling through life. It’s gives me a mental mind f$#K

  3. Rafael Beek says:

    thanks, good information ! i’ve already subcribed to your feed

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