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It's Never Too Early to Begin Your Retirement Planning
Retirement planning is an essential part of financial security that many people neglect. Today, more than ever, we need to be aware of providing for our future so that we are prepared, no matter what may happen in the future.
It is never too early to begin your retirement planning, but it is never too late, either. Even if you are getting closer to retirement age and are feeling a bit unprepared, don't panic. Make an organized plan, stick to it, and you can still improve your situation and meet your goals.
As a first step in your retirement planning, consider what you think your living expenses will be. One way to estimate those costs is to look at what your current expenses are and then make some adjustments. You should add up all your expenses from one year as a starting point.
The next retirement planning step is to consider how your expenses will change between now and then. Perhaps your home mortgage will be paid off, and your children grown and supporting themselves. On the other hand, some of your expenses may increase. Many people plan to travel during retirement. If this is part of your plan, you will need to prepare for it.
Hopefully, a little of your retirement planning is already in motion with a pension plan or 401K account. Be sure to look at what income you can expect to have from these investments and any other investments you have made, upon retirement. Don't forget about Social Security, too. While there is a lot of speculation about the future of Social Security, you can learn what your estimated benefit is expected to be. The Social Security Administration has a website from which you can request a copy of your benefit statement.
Now that you have an idea of your future expenses and income, compare the two figures and assess whether you are on track to meet your goals. One good thing about doing retirement planning early and making occasional reassessments of that plan, is that you can change it if you aren't making the progress you had planned on.
By taking the time to look into retirement planning, you will create a better future for yourself and your loved ones. Preparing for your future needs enhances the quality of your life, giving a feeling of peace and security today for what the future holds.