If retirement hit tomorrow, do you feel you are prepared? You might be young and not prepared for it yet. However it is important to understand that being proactive will make retirement easier. You can even consider retirement before the default age. Take into account all of your options and use the tips presented below.

TIP! Figure out exactly what your retirement needs and costs will be. You need about 75% of your current income to live during retirement.

Just about everyone looks ahead excitedly to retirement, particularly if they have worked a long time. This is a fantastic period in your life that you can enjoy. This is partially true, but it requires thorough planning to live that kind of life.

Match every contribution your employer makes with your 401k and make frequent contributions of your own. The 401k is going to let you put back some pre-tax money and that means you can save a little while not affecting your paycheck too much. If you have an employer that matches what you contribute, you’re basically getting free cash.

TIP! Save early and save often. Even if you need to start tiny, start today.

Are you worried that you have not saved enough for retirement? There is never a bad time to get started. Examine your financial situation carefully and decide on an amount of money you can invest each month. Don’t think it’s bad if you don’t have a lot. Something will be better than doing nothing, and the quicker you begin you’re going to get better investments made.

Think about waiting for some time to take full advantage of the Social Security income you get. When you wait, you can count on collecting a larger monthly payment. If you can still work some during retirement or you have other fund sources to pull from, retirement will be easier.

TIP! When you have worked for many years, retirement is probably quite appealing. They look forward to relaxing and doing all those things they have put off for most of their lives.

Get your retirement portfolio rebalanced every quarter of a year. This will help you stay on top of any market swings. You can also end up putting money into huge winners. A professional investment counselor can help you figure out what allocations are appropriate for your money and age.

Learn about pension plans. If you can locate one that’s traditional, figure out what it works like and if it covers you. What happens to that plan when you change jobs? Determine whether you will get benefits from a previous employer. You may also be eligible for benefits via your spouse’s pension plan.

TIP! Consider partial retirement. Partial retirement lets you relax without going broke.

Your retirement plan should be based on a similar lifestyle you have. If so, you can probably estimate your expenses at about 80 percent of what they currently are, since you won’t be going to work five days a week. Just don’t overspend during all your new free time.

You should pay off your debts before you consider retirement. The auto and mortgage loans are simpler if you can pay large sums before you retire. Check out your options. When you have reduced your debt, you are more financially free to do what you enjoy.

TIP! Since this will have more time on your hands, you should be able to improve your fitness. You need strong bones and a strong cardiovascular system, both of which can develop through exercise.

If you need to make every dollar go further, downsizing can be wise. If you don’t carry a mortgage, you are sure to still have the expenses that maintaining a home requires. You may prefer a different living situation after you retire. You will save a lot of money this way.

Retirement is great for spending time with grand-kids. You might have some kids that need you to take care of their kids. Make any time spent with grandchildren enjoyable for everyone involved by picking activities that you can participate in as well. Just don’t agree to watch the kids all the time. You do need time to yourself.

TIP! Have you not been saving for retirement? Does this leave you feeling overwhelmed? There is never a bad time to get started. Examine your current finances and determine how much you can save monthly.

What kind of income will be available to you when you are ready to retire? This amount includes government benefits, interest income from savings and your employer pension plan. The more you have in terms of money, the more secure you’ll be with your finances. Try to think of other places you can use as a source of income now, that will continue to flow after you retire.

Have you given any thought as to how you would like your retirement to be? Are you planning on an extravagant lifestyle? Or will it be a more frugal one? Either way is good, as long as you plan well for it. Using this advice plan out your future today.