Nearing retirement can be a trying time. If you have allowed yourself to be defined by your circumstances, this is doubly true. Retirement is a fun time in life, however, your life will most likely change. Get ready to have the time of your life by following the tips below.

TIP! Find out what your expenses are. You will need 75 percent of your current income to live comfortably.

Cut back on miscellaneous items you often purchase during the week. Jot down all your expenses, and eliminate the things you can go without. By reducing the amount spent on luxury items, you can save a large portion of your retirement monies.

Save early and save often. Even if you cannot contribute a lot, something is better than nothing. As you make more money, put away more money too. When your money is accruing interest, you’ll be ready for the future.

TIP! Decrease what you spend on random items during the week. List your expenses and remove unnecessary items.

Your 401(k) is a great way to put away funds, especially if your company adds to it when you do. A 401(k) plan gives anyone the ability to save more pre-tax dollars, so that you can actually put away more, without feeling so much sting from doing so with each paycheck. If the employer matches contributions, that is like free cash.

Use your retirement free time to get yourself in great shape. This is important to reduce the health expenses that you will pay. A good retirement features regular exercise so that you can live life to the fullest.

TIP! Consider partial retirement. Partial retirement may be a great option if you do not have a lot of money saved.

Consider your retirement savings through your job. If they have one like a 401(k) plan, make sure you sign up and add what you can. Figure out what you can about the plan you choose like how much money it will cost you and how much time you have to stay to get your money.

Every quarter, rebalance your retirement investment portfolio Getting too involved can be upsetting when the market gets shaky. Less frequently may cause you to miss some opportunities. A financial adviser may be able to help you with these decisions.

TIP! Put money in your 401K and also maximize the employer match if you can. A 401k account will let you put away money before tax, allowing you to save more money without it hurting your paycheck too much.

Retirement is a great time to get a small business started if you think it has a chance at success. Many retirees are successful at turning their lifelong hobbies into booming businesses. This situation won’t be too stressful because the person who is retired doesn’t depend on this to succeed.

Are you age 50 or older? Consider playing “catch up” with your IRA. Find out the annual limit you can contribute to your Individual Retirement Account. Once you reach age 50, the limit is increased. This is perfect for those people who got a late start, but still want to save big.

TIP! Is the thought of saving for retirement making you anxious? It’s not too late, even now. Check your finances and decide how much you can afford to save each month.

When planning for your retirement income needs, plan to live the lifestyle you currently do. Since you will not be working any longer, it is safe to say you will need around 80 percent of your current income. Just know that you shouldn’t be spending money as a free time activity.

You should pay off your debts before you consider retirement. Mortgages and other debts can quickly eat up your monthly retirement payments. This will reduce your overall expenses in the long run.

TIP! Look at the retirement savings plan that you have through your employer. If there is a 401K plan available, participate in it and contribute whatever you can into it.

Social Security cannot be relied upon to pay for everything you need. While they will provide you with 40% of what you make now, it costs more than that to live. You will need at least 70 percent of your current salary to live comfortably.

Make sure to enjoy yourself. Many people find growing older to be a tough time. And that’s a good reason to do things that will fill you with a sense of purpose and make you happy during that time. Try finding hobbies that you love so that you can enjoy happy days.

TIP! Try to wait a couple more years before you get income from Social Security, if you’re able to. This means you will get more each month when the checks finally do start arriving.

Have you thought about a reverse mortgage? In this way, you can stay in your existing home and use funds built up in your home equity. You don’t have to repay it, but after you die, the loan is paid by your estate. This is excellent for adding extra funds when you need them.

Social Security

TIP! Look at your portfolio for retirement quarterly. This can prevent huge losses in the future.

Don’t depend on Social Security alone when it is time to retire. This may help a little, but will not provide you with a reliable source of income. You get about 40 percent of your current income from social security.

Get out of debt before retiring. You may be looking forward to the relaxation and recreation of retirement, but it will be pretty tough to enjoy yourself as much while paying off the rest of your loans. Now is the time to get your finances in order so that your retirement can be a happy one.

TIP! Find out about pension plans through your employer. Find out if you are covered and how it works.

Make sure to appoint a financial and health care Power of Attorney for your golden years. This person can make medical decisions if you can’t. That means this person can help you pay your bills, care for your home, and make sure that you remain financially stable.

Try planning for retirement before you plan to retire. This includes more than just your savings. Also, look at your current expenditures. Is your current home affordable? Can you go out to eat at the same level that you once were? If the answer to these questions is no, make some adjustments now.

TIP! Retirement is a great time to get a small business started if you think it has a chance at success. Turn your hobby into a home career! It should be fun for you since you aren’t trying to make a living from it.

During retirement, it is important to stay active. Pick up a part-time gig to bring in more income and keep you occupied. You might only put in a few hours each week, but that can really help your wallet out.

Plan your estate carefully. Having your legal affairs in order is essential. While some of these items will not come into play until after you die, others can save you from financial ruin should you become physically or mentally incapacitated.

TIP! If you are 50 years old or greater, you can play catch up with your IRA account. There is typically a yearly limit of $5,500 that you can save in your IRA.

Now that you’ve read this article, you understand a thing or two about retirement. Not only will you be able to control what you do at all times, you can be sure you’re able to live your days as you want to. Keep these tips in mind when planning for your retirement.