Retirement sounds so fun to many of us, but too many of us also dread the planning that comes with getting ready for retirement. There are a number of reasons why this occurs. However, careful planning is necessary for a comfortable retirement. So what things should you know? Keep reading to find out!

Consider how much your retirement costs and needs are going to be. Studies have shown that most people need around 75% of the income they were receiving before retirement. If you make less money, you may need 90%.

Partial Retirement

Think about partial retirement. Partial retirement lets you relax without going broke. One way to do this is to remain in your current job on a part-time basis. You will have time to relax while still bringing in some money, and it will be easier to transfer to full retirement when you are ready.

Put money in your 401K and also maximize the employer match if you can. You can put money into your 401k before taxes, allowing you to save more. When employers match contributions, they are giving you free money.

When you retire, don’t sit down! Get out there and get in shape. It is very important to keep your muscles, bones and heart strong as you grow older. Try working out regularly. You may find that you like it more.

Do you feel overwhelmed due to lack of saving? There is never a bad time to get started. View your financial situation to figure out what you are able to save every month. Do not be concerned if it is less than you think it should be. Any money is better than no money, and the quicker you get things going, the more interest you’ll be in a position to earn.

Learn about the pension plans offered by your employer. If you can locate one that’s traditional, figure out what it works like and if it covers you. Determine how you are affected if you move jobs. Find out if there are benefits available from your former employer. Perhaps you are eligible for benefits from the pension plan of your spouse.

Set goals that are for the short and the long term. Goals are essential when anyone needs to save money. If you know what kind of money you need, then you’ll know what needs to be saved. Do the math and come up with the amount you need to save every week or every month.

Retirement is a great time to get a small business started if you think it has a chance at success. Many people are successful at turning a favorite hobby into a business that operates out of their home. You won’t need to rely on the money which makes it less stressful.

Hit 50

Your IRA is a great place to invest “catch up” contributions when you hit 50 years old. Typically, there is a $5,500 yearly limit on IRA savings. But once you hit 50 years old, you can raise that limit to 17,500 a year. This allows you to quickly make up for lost time when it comes to retirement savings.

When calculating your retirement needs, plan on living the same lifestyle you do now. If so, you can probably estimate your expenses at about 80 percent of what they currently are, since you won’t be going to work five days a week. Just don’t overspend during all your new free time.

Look for some other retired people to befriend. Finding a friendly group of individuals who are also retired can help you enjoy your free time. You can hang out with them during the day when most people are working. As an added bonus, you have a support network of like-minded individuals.

Try to pay off all of your loans before retiring. Mortgage and automobile loans will be easier to manage if you reduce the balance before retirement, so make sure you consider those options. By lowering your financial obligations, you can better enjoy your retirement.

Retirement can be a great opportunity to spend more time with grandchildren. Your children may need you to help them with childcare sometimes. Plan great activities to enjoy the time spent with your family. Just don’t agree to watch the kids all the time. You do need time to yourself.

What are the various types of income you want to be able to use during your retirement years? You need to make sure that you know what benefits from the government will be available to you, what your pension plan is doing and much more. Security comes with multiple income streams. Can you come up with any other income sources that can be created now that would continue to flow after you retire?

As you’ve read, retirement saving isn’t as hard as you thought. While you will need will power to help you save for your retirement, it will be very worthwhile in the long run. Use these tips in the future.