Retirement can be fun and relaxing. Proper planning is essential. This article contains several great ideas to help you get started. Print this article off so you can use it again if you need to. Review this information so that you are ready to start preparing for retirement. The investment is worth it.

TIP! Many people think of fully retiring, but partial retirement is another great option. Partial retirement may be the answer if you are ready to retire but don’t have the money.

Determine your exact retirement costs. Studies have shown that most Americans need about 75 percent of what they make in income to help them when they retire. That means 75 percent of what you’re earning at this time. People who already receive a low income may need around 90%.

Think about partial retirement. If you are not able to fully retire, consider doing a partial retirement. This could take the form of keeping your current career, but only part-time. This allows you more leisure time while you continue earning money. You can always take full retirement later on.

TIP! Regularly contribute to your 401K plan to maximize its earnings. You can put money into your 401k before taxes, allowing you to save more.

If your employer matches your contributions, put as much money into your investments as you can. 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 you have an employer willing to match contributions, you can almost get free money.

When you retire, don’t sit down! Get out there and get in shape. Healthy muscles and bones will be very important for you at this time; you need to work on your cardiovascular exercises too. Try working out regularly. You may find that you like it more.

TIP! Look at the retirement savings plan that you have through your employer. If there is a 401k plan, sign up and start adding as much as possible.

Are you worried about retirement because you have not yet begun putting money aside for it? Take heart! There is no time like the present! Check your finances and decide how much you can afford to save each month. Do not be concerned if it is less than you think it should be. Something will be better than doing nothing, and the quicker you begin you’re going to get better investments made.

Set goals, both short term and long term. Goals are as important for retirement as they are at any other time of life. Knowing what you are likely to need money-wise makes saving easier. A little math will provide you with small weekly or monthly saving goals.

TIP! How should you invest? Have a diverse portfolio and never put all of your savings into one particular investment. That will make things less risky.

If you are 50 or older you can contribute “catch up” money to the IRA account you have. Before age 50, you are limited to contributing $5,500 each year. If you are older than 50, this yearly limit grows to around $17,500. This is good for people that want to save lots of money.

Search for other retirees. Finding a good group of people who no longer work can be one way to enjoy your time. You can engage in a number of fun activities with this group of friends. You’ll also find yourself with a needed support group.

TIP! Try reducing expenses as you go into retirement, as those savings can help you out a lot in the years to come. While you may believe that you have a good handle on your financial future, unexpected events often occur.

Try to pay off all of your loans before retiring. You will have an easier time managing your home’s mortgage and your vehicle loan now while you are still working versus when you are retired. By lowering your financial obligations, you can better enjoy your retirement.

Retirement can be a great opportunity to spend more time with grandchildren. Your grown children may appreciate some assistance with watching their babies. Become an active participant in family activities. But avoid becoming a full time baby sitter.

TIP! You might want to look into getting a health plan that covers long-term care. Your health becomes increasingly important (and expensive) as you age.

What kind of income will be available to you when you are ready to retire? This depends on what you have coming from interest on your savings, investments, and retirement accounts. You’ll have a more comfortable and secure retirement if you have more funds available to you. Try to think of other places you can use as a source of income now, that will continue to flow after you retire.

Don’t ever withdraw from your retirement savings unless you have retired. If you access them prematurely, you may lose some of the money you saved. This might include fees and tax benefits from keeping the money in there. Don’t use this money until you are ready to retire.

TIP! Once you retire, it might be a good time to set up a small business you’ve always dreamed of having. Many people succeed later on by taking their lifelong hobby and creating small business at home from it.

Be sure to have a good time. Life comes with its ups and downs, but be sure to live each day as you feel is right. If you don’t already have a few enjoyable hobbies, find one that will make you happy.

If you invest time now in planning for your retirement, you will be rewarded later. These suggestions should be committed to memory. Use whichever ones fit your situation. Preparation will go a long way to providing happiness during your retirement. Begin now!