Retirement Planning: How you Should Do it?

Prior to discussing about retirement, it is important to discuss how we can plan a successful retirement.  Planning your retirement beforehand is a significant thing to do for any individual.  With the different phase of life retirement planning may seem trivial to many, but surprisingly it is the best way to save for the future. All possible sources of retirement should be checked in order to achieve a guaranteed financial security after retirement. 


If you are Above Twenty-

If you are in your twenties and your paycheck is evident of the fact then there is no reason to get alarmed about your retirement. According to an analysis of 2015 by Edvisors.com if you are an average graduate then you can have more than $30K if your student loan debt. If you are above twenty then you can have an estimate medium amount of $16K and can make between $100 and $300 in student loan payment. 
In twentysomething, you can invest in 401(k) or 403(K) plan offered by your employer so that you can get sufficient benefit of the companies matching the profile. On addition to this, investing in your twenties can be very beneficial for you as you will have a very long period of 40 years to accumulate enough corpus for your future and secure your retirement life. 

If you are Above Thirty-

The thirties are a great phase of life. But when you reach that age it brings a lot of responsibility along with its charm. Either you are working in the same company or have gained experience and have enhanced your pay grades. To fulfill all your needs you might be required to do a handsome amount of expenses. On top of it very lees percentage of people really think about retirement.  

According to a survey, the average thirties people has $45,000 saved which is fine depending upon the annual salary. So, if you want to have a financially sound retirement it is advisable that one should save the equivalent of the annual salary in some retirement plan. Suppose if a person has an annual income $40,000 then the similar amount he/she must have in the retirement account. 

If you have not started retirement planning or contributing to your retirement fund already in your early 30s, then here is the time to start doing it. According to one’s potential the savings must be done. Moreover, one should not be too conservative with the choices of investments. Making investment at a young age is more sensible as you will have enough time to overcome the market downswings. As your ultimate retirement corpus will be entirely different it is important for any individual to try to save more and strategically plan your retirement. 

If you are Above Forty- 

Forties are the prime time of anyone’s career. With a lot of responsibilities and a handsome amount of salary in hand, it is crucial to have a pension scheme plan at this point of life in order to safeguard your golden days of retirement. Statistically, most Americans lag behind at this phase of life and on average they have a median saving of only $63,000. 
This sum can extremely form short of in case any emergency happens after retirement. If a person is making $55,000 then he/she should already have a balance of $1,65,000 banked. 

When you get a hike in your salary, keep that money aside for your retirement savings. If you no longer have to pay for your student loan, put that amount into your savings as well. If you don’t have an Individual retirement Account (IRA), you should probably start one and start saving through it. Save as much money as possible depending on your annual income, especially if your company does not provide an adequate pension scheme.

If you are Above Fifty-

Fifties are that phase of life when a person starts feeling old and are only about 15 years away from the classic age of which they will require the retirement money to live on. However, with rising expenses and fulfilling the responsibilities like financing your child’s education, investing in real estates, paying your medical bills your retirement planning may look blurry. 

At this age, considering meeting with a financial planner is a must do task. If the average saving of 50 plus person is about $1,17,000  you should at least have $2,40,000 saved for you after retirement. 
If your kids are settled somewhere else then probably it’s the time to consider downsizing your expenses and start collecting the appreciated value of your home. Moreover, if you have any other asset or company stock options, the fifties is the time when you start considering these as a part of your retirement fund. 

Purchase a suitable pension plan for yourself so that you can have a continuous flow of income even after retirement. Financial planners who are specialized in this field can help you to get the most beneficial plan for yourself and make the best strategy for your portfolio. 


If you are Above Sixty-

Now sixties are the golden age of retirement. This is the time when you start reaping the rewards of years long savings. Either you use this money to support your lifestyle or to support your child. By the time a person reaches 60, he/she should have six times the saved salary i.e. if a person makes $60,000 per year then he/she should have $3,60,000 saved. 

While you go for a pension scheme it is important to understand the different products available in the market. Today’s insurance market offers a large number of retirement solutions, according to your own convenience you can choose one that offers you the income you need. Besides this, you can calculate the income from the retirement planning calculations.

Conclusion

The retirement amount is highly individualized. However, there are various benchmarks that you can achieve at every decade of your life. The earlier you start planning for your golden days of retirement, the much-relaxed life you can live later.