Are you already thinking about retirement? Nobody should wish their life away, but that doesn’t mean you shouldn’t plan for the future either. The sad reality is that in 2023, more than half of women and nearly half of men have no retirement savings. This means many people are having to work through what should be their golden years, and even sell their homes to fund their retirement.
Planning for retirement early can help you avoid some of the struggles that many face with their finances, but it starts with knowing how much you need.
What is the cost of your retirement? Use this post to help you work it out.
What does retirement look like for you?
Everyone has a different view of their retirement. Some people may be prepared (and would prefer) to work through it, while others may want to use the time to see the world, spend time with family and pursue other interests. It’s important to think about the retirement you want and how much money you will need to live that lifestyle.
You can explore the cost of assisted living at The Glen Retirement System, healthcare costs and other things you think could have an impact on your retirement. Having some goals in mind can help you save more, ensuring you get the retirement you want.
That doesn’t mean things can’t change in the future, but having a general idea will help guide your finances.
Use a retirement calculator
A retirement calculator is a very handy tool to work out what you’re going to need to save for your retirement. Bankrate has one of the best retirement calculators that’s easy to use and will give you some accurate figures you can work with. Using a retirement calculator can give you a better perspective of your future, and help you make some changes if needed.
Get a savings plan together
With some figures to aim for, you need to focus on a savings plan that will help you prepare for retirement. While workplace benefits can help, it’s also important to build up your own savings. This isn’t always easy to do, especially when there is an ongoing cost of living crisis.
Spend time adjusting your budget to help you cut out unnecessary spending, and ensure that the things you are spending on provide the best value. You could save money on your life insurance policy to cut down on your expenses, and take another look at your car payments and insurance to make some easy savings. You can also improve your everyday savings with the help of the following tips:
Change your habits now for a better lifestyle later
While it’s not easy to think about retirement life, it’s better to do it now so that you don’t leave it too late. Changing your spending habits to prioritize saving, reduce debt and build up some assets will help you become a little more financially responsible, so that you don’t have to worry in the future. It is a mindset change, but once it’s done, you can start to focus on the present instead.
The cost of retirement varies for everyone, but it’s important you start thinking about it now. Spend some time planning your future so you can enjoy your life without worrying about your finances.