Far too many of us are caught short when it comes to retirement savings. Often, we don't realize it until we're not that far from retirement - perhaps only 5 years away. Take hope: a plan can make it happen.
Nothing really happens unless you plan well and realistically, and then put your plan into action. I've outlined how to plan and which actions to take. Yes, you'll need to combine some perseverance, planning, and sacrifice to make it all come true.
To begin with, find out where you stand in terms of retirement income and expenses based on what you have now.
-Step 1 - project your retirement income based on today's status:
Determine your pension amount is you get one. Then choose when you'll begin your Social Security benefits. Waiting beyond your full retirement age will increase your benefits about 8% per year.
Project what your savings will grow to without more contributions. Then take about 4% of that for what it will give you as income from savings. Now, Add it all up those 3 income factors.
-Step 2 - project your retirement expenses based on today's status:
To put that projected retirement income into perspective, estimate your current living expenses as if you'll live where you are at retirement. Reduce it for job-related costs or just take 75% of it all as your retirement expenses.
Now compare your projected retirement income with your projected retirement living expenses. If you're short on income, then you've go 2 options to improve matters:
* Increase your savings for more income from savings and
* decrease your retirement living expenses.
Take immediate pre-retirement actions to guarantee a good retirement:
Make both of these options happen, if that's what it takes.
Look into how you can contribute more savings. Use whatever tax-advantage savings plans are available to you. Contribute the maximum amount. And if you can save more, then do so. Divide and diversify your savings: 65% income/35% equity. Time's too short to risk them
Eliminate all unnecessary expenses including debt. Take a part-time job to pay debt off or to save more. Consider starting up a side business that you could also do in retirement - one that you'll enjoy.
Perhaps you never thought you'd have to move to lower your living expenses, but it's not the end of the world if you do. You, of course, can buy down and move to a less expensive neighborhood. That might solve the problem.
But you can also consider going off-shore - to another country like Panama, Mexico, or Ecuador. It can be considerably less expensive but still supply you with a similar standard of living. You just have to do your homework on what's available and where.
Commit to finding out what's important to you - what makes life worth living. If you do that you'll achieve a good retirement. Get more information by visiting the http://architecturevbn.blogspot.com .
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