This Isn’t Your Parents’ Retirement

A retirement that is financially secure will be harder for you than it was for your parents no matter your age. There are a number of people that have not saved or planned well enough. There have also been a number of changes that made it more difficult to have a comfortable life during retirement.

Things such as living longer, medical issues and having more debt than past generations mean that you are going to have to work harder to have the kind of peaceful retirement where you can afford to rest instead of working until you are no longer able to perform the job.

Longer Lifespans

Get a Financial Advisor. Someone recommended by a colleague, family or friends, who is certified can assist you in meeting your financial goals for retirement.

Home Modifications

These should be done before you retire so that you are not spending money out of your retirement to have them completed. Do one project at a time to help keep yourself from taking a large financial hit. You also need to be where you can obtain emergency services easily should the need arise.

Increased Debt

Paying down debt can be difficult but it can go a long way to ensuring that the retirement years are more comfortable financially. It is important to live below your means rather than above them if you want to enter into retirement without debt. Don’t tackle all of your debt at once, focus on one thing at a time.

Unplanned Retirement

Even if you have planned and saved the chances are that you did not plan for retiring ten or even two years earlier than you originally planned. This means that you might need to find ways to supplement your income just to keep your head above water.

No Pension or Retirement Plan from Company

This means that it is up to the individual to determine how much they need in retirement and save it themselves. This often requires someone to help you, and it is going to cost you to get sound financial advice so be sure to educate yourself.

Lack of Savings

Do not touch your retirement fund no matter what. Interest rates are lower than they have been in the past so investments have to be risker. Do not use your savings because the lower rates make it harder to recover the money that you take out.

Find a Way to Save Money

What can you invest in? Is there anything you can do to reduce your expenses to leave room for saving money? Take a look at every expense you have from every possible angle to find out.

Living Alone

There are a lot of people that find themselves working after they retire just to keep food on the table. Getting a roommate can help you to cover the costs associated with retirement and save you both money on monthly expenses.

Full Time or Part Time Work

There are those who now plan on working well into retirement for both experience and the income that they bring in. It is believed that over half of your current income will be required to live off of during retirement.

Uninformed About Investments

Are taking advantage of employer matched contributions to retirement plans? You are missing out on extra money if you are not contributing to your own retirement plan.

Settling for Income Instead of Increasing the Potential

Ask yourself a few questions:

  • Can you get credentials that provide you with the chance for a raise or a position with higher pay?
  • Do you have anyone to advise you on your career?
  • Can anyone help you with advancement by mentoring you?
  • Are training programs available to you?
  • Do you have college credits that will transfer or a degree?
  • Can you take vocational classes or enroll in an online program to increase your knowledge and skill?

Any of these things can help to increase your earnings potential which can increase the amount of money that you are able to save for retirement. You can take your increased earnings and put more aside for retirement as long as you do not increase your spending habits to match.

The Recession Took Its Toll

Take Action Now. Get help, and do not spend home equity, take out another mortgage or spend what you have saved for retirement in an attempt to get out of debt that has become unmanageable. Obtaining debt to reduce debt can put you in a worse situation that can last longer than the original debt.

You Can’t Rely on Social Security

Be careful with your strategy because while you can start claiming benefits at age 62 you will typically get more the longer you wait to start claiming your benefits.

Concerns About Health Care

Retirement today looks different than it did for your parents. Most do not have gardens which makes them reliant on buying food, electrical and medical costs have increased. The decreasing ability to enter into retirement with a home that is paid off and no debt make the amount of money needed during these years more than it was even ten years ago. Preparing early with careful planning and savings will go a long way to make you more comfortable in your retirement.

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