Do you know how to navigate your retirement? Since COVID-19 took the world by storm last year, the topic of financial preparedness has moved to the forefront of many household’s concerns. It can be difficult to gauge what is an appropriate amount of money to invest or set aside for what is said to be one of the best chapters of your life.
According to the most recent data reported in 2019 by the U.S. Census Bureau, the average mean retirement income for retirees 65 and older is $73,228 and the median average is $47,357. That being said, this amount can vary from one part of the country to another, and even from state to state.
Luckily, we break down the research for you and provide some key recommendations on how you can know when it’s the right time to say goodbye to the workforce and how you can boost your retirement savings beforehand.
Knowing what retirement lifestyle you want, potential health care costs, and the cost of living in your desired area are some ways you can better prepare for retirement feeling happy, healthy, wealthy and wise.
Your decisions about the way you live should help you delineate a framework for how frugal or generous you wish to spend your time as a retiree. Things to think about should include your average expenses, what types of vacations you might plan on taking, and any emergency funds that you want at your disposal.
This is easily one of the most crucial things to consider as part of your retirement plan. Take some time to understand what different types of medications, surgeries, and procedures that may be necessary in the future cost. If there is anything we learned from the pandemic, it’s that our health should never be taken for granted.
Thinking of moving somewhere to spend your retirement? Get to know the area, the cost of purchasing or leasing out real estate, and the overall cost of living of that general area. Whether you are going to Spain for a year or moving into your son or daughter’s guest house, it’s never a bad idea to understand what the potential price differences are between where you are now and where you want to be.
On top of doing the research that will help you better understand your financial situation, it’s also just as important to make sure you have the finances to support your retirement goals. What good does it do to know where you want to be, but have no plan of how to get there? Read below for the top three ways you can boost your income and supplement any financial needs pre and post-retirement.
There are many creative ways you can work to boost your retirement income now. A few include investing more into personal accounts, purchasing income-producing assets, and continuing to work until you have the money you need saved.
According to the Transamerica Center for Retirement Studies, about 48 percent of Americans are counting on their main source of retirement income to be from personal financial assets.
From opening a 401k or Roth IRA to purchasing annuities, there are many ways that you can invest. With such low growth rates for savings accounts, it’s no secret that investment accounts have risen in popularity over the past few years.
Everyone knows that one of the most tried and tested ways to boost your income is buying property. Whether you purchase it to rent, resell, or just as a second vacation home, this is one of the surest methods to park your money somewhere where it will surely appreciate in the long run.
Ready to retire from your main job, but don’t want to leave the workforce just yet? Then consider getting a second job? From working as a freelancer to getting a part time job, you have several options of supplementing your income. Find something that falls within your venn diagram of experience, interest, and desired commitment level.
Saving for retirement is a long process that can be particularly difficult to navigate for the self-employed. However, it doesn’t have to be. If you’re worried you’re not on track to hit the average retirement income — or worried you won’t be financially stable during retirement — talk with a financial advisor who can help you understand where to place more emphasis in your overall financial plan.
If you’re unsure what type of retirement income you’ll need, look through the visual below to get a better idea so you can start planning now.