Retirement planning is not a comfortable subject for some folks. For many, the reason is that the topic of retirement is overwheleming. That being said, it does not need to be. Investing your time to learn will be worth it in the end. The tips here can help you start planning your retirement.

75 Percent

Determine the costs you will face after you retire. Studies show that the average American requires at least 75 percent of their normal income to survive during retirement: that’s 75 percent of the salary that you are earning right now. People who earn very little now, will need to have about ninety percent of their current earnings available during retirement.

TIP! Spend less of your money on unnecessary items. Jot down your expenses and consider where you can make some cuts.

Cut back on your expenditures each week, particularly with respect to little things like fast food or coffee. Write a list of your expenses to help determine which items are luxury items you can cut out. Get rid of these items and watch your bankroll grow.

Start saving early and continue saving until you reach retirement age. Even if you cannot contribute a lot, something is better than nothing. As your income rises, so should your savings. Saving money in an account that pays interest will result in your balance growing over time.

TIP! The younger you are when you begin your savings, the greater amount you will have to retire with. Even small investments will accrue over time.

Working part time in the future may be an option. If you cannot afford to retire fully, consider a partial retirement. You can either work a part time job or cut your hours at your current job. This will give you the opportunity to relax while earning money and transitioning to full retirement.

With the extra time you’re going to have when you retire, you should spend some of it getting into shape! You will really need to care for your body in retirement, because it’s important as you age. Get to working out on a regular basis so you can enjoy it a lot.

TIP! Long years at work make retirement seem great. Most people assume that retirement will be mostly fun because they will have so much time.

Does the fact that you are not yet saving for retirement concern you? There is never a bad time to get started. Look at your budget and decide on how much money you can save monthly. Don’t worry if it’s not an astonishing amount. A little bit of saving will go a long way in the future.

If it’s possible, you may even want to consider waiting a while before digging into your Social Security income. This will increase the amount of money you will draw each month. This will be simpler to do if you can continue to work or use other retirement funds while you are waiting.

TIP! If your employer matches your contributions, put as much money into your investments as you can. This lets you sock away pre-tax money, so they take less out from your paycheck.

Downsizing is the name of the retirement game. Things happen, no matter how well you have planned out your future. Big expenses and medical bills can happen at any point, and they can be very hard to deal with once you’re retired.

Many people think that retirement will afford them the opportunity to accomplish their dreams. However, time often seems to speed by as we age. Plan early so your time is wisely spent.

TIP! Exercise is a great way to spend some of your time each day. Your bones and muscles must be maintained, and exercise will improve your cardiovascular system as well.

If you are 50 or older you can contribute “catch up” money to the IRA account you have. Typically, you can save a maximum of $5500 annually in your IRA. But, after you hit age 50, the limit grows to roughly $17,500. This is good for people that want to save lots of money.

Make friends with other retired people. It will help fill your free time if you have friends that have plenty of time to spend with you. You can hang out with them during the day when most people are working. You’ll also find yourself with a needed support group.

TIP! Understand the retirement plan at your company. Sign up for plans like 401(k) and plan as well as you can.

Begin paying off loans prior to retiring. It will be much easier for you to pay your bills off before retiring. Think about your choices. This will reduce your overall expenses in the long run.

Social Security

TIP! Postpone collecting Social Security if you are able to do so. Waiting means your allowance will go up.

Remember that Social Security payments will not cover all your living expenses. While your Social Security benefits will pay for about 40 percent of what you make now when you retire, it’s not going to match your living costs. It takes approximately 3/4 of your previous earnings to be comfortable.

When you retire, you can spend quality time with your grandkids. You may have children who need occasional help with childcare. Make any time spent with grandchildren enjoyable for everyone involved by picking activities that you can participate in as well. However don’t overextend yourself by caring for children full time.

TIP! Many people think they will have plenty of time to do everything they ever wanted to after they retire. Time certainly seems to slip by faster the more we age.

What kind of income will be available to you when you are ready to retire? This includes interest from savings, benefits from the government and the pension plan from your employer. The more funds you can tap, the more security you have. What can you do now to make more money to put toward your future retirement?

Don’t touch your retirement savings no matter how difficult things get for you financially. You will lose money otherwise. Also, there may be withdrawal penalties for taking the money out and you could lose some tax benefits. Only use those monies once you have retired.

TIP! Think about getting a health plan for the long term. Your health is likely to get worse as the years go on.

Be sure that you enjoy yourself. Life gets hard as you age, but you should take all possible steps to make it more enjoyable. Fill your days with happiness by doing hobbies you have enjoyed for many years.

Your retirement can be a fun part of life. However, you must plan in advance. Use what you’ve learned today to customize your plan. After you start, you will see that things feel more comfortable.