Retirement is a life-changing event that’s well worth preparing for.
Yet 74% of Americans are not ready to take-on this work-free existence.
Instead of applying the “out of sight, out of mind” approach towards this next chapter of your life, start chipping away at it TODAY!
That said, here are 3 major retirement planning tips to help you out along the way.
1. Take inflation into account.
One of the biggest ruts retirees fall into time and time again is setting aside finances for life after work, without the assumption that prices will go up.
Inflation is a fact of life. According to the consumer price index, the average annual inflation rate is sitting somewhere around 2%.
It may not seem like a lot, but these rising costs can come back to haunt you and diminish the buying power of your retirement funds if you don’t plan accordingly.
It’s always better to be safe than sorry, which is why you should take inflation into consideration and shoot to over-save rather than just breaking even with what you’ll need to get by during retirement.
2. Maintain a healthy lifestyle.
In this day and age, physical fitness seems to be just as important as financial fitness.
It’s proven that healthcare is one of the largest expenses during retirement. In fact, studies show that the average couple will need about $280,000 in today’s dollars to cover these medical payments alone.
The thing is, you can skip out on a good portion of these healthcare costs just by practicing better health.
Did you know that almost half of the population is effected by chronic illnesses, such as diabetes and heart disease?
These conditions can cost you a fortune both before and after you retire, but taking preventative measures NOW can make a world of difference.
Getting regular physical activity and watching what you eat can save you THOUSANDS of dollars in the long run.
Healthcare expenses are already pricey enough and there’s no need to the tab by spending money to treat avoidable health issues.
3. Work longer.
This may not be the kind of advice you’re looking for, but one of the best ways to ensure you have enough financial wiggle-room during retirement is to work a few extra years.
Most people choose to jump on retirement the first chance they get and start claiming Social Security once they turn 62 years old.
But what they don’t understand is that doing so comes along with a benefit reduction.
If possible, postpone retirement as long as you can. Generally speaking, the longer you can wait to accept Social Security compensation, the more you can collect.
Try to tough out those days spent in the office so you can keep the paychecks rolling in and increase the benefits you receive from social security.
Separate yourself from the 74% of Americans who aren’t ready to retire by following these simple guidelines. I promise you that it will pay off in the end (literally).
On a separate note, each of these tips apply to the traditional path of retirement.
If you’re looking for a shortcut to get your finances in order and retire even faster, then come attend the Annual Wealth Summit this coming weekend.
During the seminar, we’ll cover some of the best ways to build wealth and reach the retirement of your dreams.
As of now, there are still a few seats available!
Click here to find out everything that comes included with your ticket purchase and how you can secure your spot before it’s too late.