Did you know that Social Security only replaces about 40% of the income that you’ve earned prior to retirement?
This percentage may come as a surprise, but it’s no secret that Social Security alone isn’t enough to satisfy your financial needs once you’ve parted from your career.
So, what are you supposed to do about the remaining 60%?
Here are two EASY ways to prepare so you can rest assured that you’re taken care of throughout retirement.
First things first… you can’t just make the decision to save without actually putting forth the commitment and effort required to do so.
YOU need to actually set some money aside if you want to build up your savings account and prepare for retirement.
Studies show that 43% of Americans fall short of reaching their retirement goals. That’s close to half the population!
For this reason, it’s important to be realistic and set the bar at a height that is achievable based on your personal status. After you do so, discipline yourself and stay true to your original goal.
In other words, save as much as you can and then make a conscious effort to leave these savings alone until that long-awaited date for retirement comes to an end.
Refrain from cashing-out early!
Not only does an early withdrawal often result in an immediate tax hit, but it can impact your plans for retirement.
The next time you’re having an inclination to dip into your savings, take a second to visualize the future that you’ve planned and honestly ask yourself if removing this money from your retirement fund is really worth it in terms of the long run.
I guarantee that 9 times out of 10 you’ll come back to your senses and think otherwise.
It’s clear that social security by itself simply isn’t enough to cover the complete costs of retirement; however, the solution lies in personal motivation and the self-accountability to save and keep saving.
I know it sounds ridiculously simple, but the reason 43% of Americans fail to reach their retirement goals is because they lack the necessary discipline that’s involved in the process.
Don’t let yourself fall victim to the cycle of depleting your savings before retirement.
Force yourself into the habit of designating a specific amount of money for retirement. Afterwards, sit back and forget about the cash until you’ve finally stepped into the realm of retirement.
Whether your idea of retirement consists of sitting on a beach with a drink in your hand or hopping from country to country and travelling the world, one day you’ll look back and thank yourself for adequately preparing for this post-career lifestyle and being able to enjoy it according to planned.