Planning for Retirement? Here Are 5 Crucial Points to Consider
Depending on how old you are, you may think about retirement daily, or perhaps, you’ve never thought about it all. However, it is never too early to start saving for retirement, and ideally, you should start saving in your 20s (if not before). Currently, 80 percent of people between the ages of 30 and 54 believe they will not have enough money put away for retirement, and that is a scary number.
Unless you have been saving for a while, once you approach your goal retirement age, you will find yourself in financial trouble. How much you need to save in order to maintain your current lifestyle (or close to it) will depend on your own personal needs, but there are several important issues you should consider in order to determine how much you should be saving.
1. Determine the age at which you want to retire
You can begin receiving Social Security benefits at 62, but that doesn’t necessarily mean you should start those benefits. Your benefits are reduced a fraction of a percent for each month before your full retirement age (which depends on when you were born). If you start your benefits early, you will receive benefits for a longer amount of time, but your benefit amount will be smaller.
You will need to factor in Social Security when deciding the age at which you plan to retire and how much to save in order to retire at that time. If you want to retire early, you will need to save more each year, so having a goal retirement year in mind is helpful. If you love your job or simply want to retire later in order to save more, then you can factor that into your anticipated retirement age, as well.