Today, the issue of retiring is much less dependent on the person’s age, than it is based on how much money they have saved up for their retirement. Because of the major decline in employer-sponsored retirement plans and the rise in 401(k)s and IRAs, planning to successfully retire becomes a priority. Below are some great tips to make sure you are financially ready to retire.
Planning Where You Will Live
Several retirees in past generations would move from their family homes in the Northwest or Midwest to live in the sunnier states of California, Arizona, and Florida to escape the cold. Today, many find they can make their retirement savings last a lot longer by moving to other states when they retire. Find a place that lets you do what you love, while still offering good retirement plans and standard of living.
Retirement Plan
It’s important you have an organized plan for how you will put money away for your retirement, and to implement that plan as soon as possible. Estimates are that more than one-quarter of the people working in the United States have under $1,000 in their savings account – including funds for retirement. It will probably be a long time before these people can financially afford to retire. Build a retirement plan early in life, and implement it as soon as possible.
Financial Obligations
Unfortunately, not everyone goes into their retirement years with no debt. Instead, many still have mortgages on their residence, co-signed obligations for the college education of their children, and some are still paying off their own student loans. This can add up to a lot of consumer debt in addition to credit cards. Before you decide if you are financially ready to retire, have a solid understanding of your financial obligations and debts so you don’t eat into your retirement funds.
Your Health
The biggest expense for most people retiring is ongoing health care. Even with the most recent health care reforms, the costs for health and medical services continues to increase, and it will probably increase even more. Be completely honest with yourself and identify the potential health care expenses you will face during retirement so you can plan accordingly. Remember, the time might come when you have to consider assisted living homes, or retirement communities to live in with limited medical help available.
By planning ahead, you can feel sure that when you are ready to retire, you will have the finances to make it happen. Use these tips and some smart financial advice to make your retirement dreams a reality.
