Planning For Your Retirement (the old way) / the STEEMIT WAY :)

Reaching your golden years has many benefits, one of them being that you get to retire and relax after all those years of hard work. This is something that should excite every retiree, but it often comes with a whole set of complications. The truth is that many people fail to plan for their retirement properly and it affects them in a big way. Many people have to continue working in order to survive or rely on family members to get them through. Planning for your retirement starts early in your life which is why you need to pay attention to how you work with your finances. Here are a few ways you can prepare for retirement.

Start saving
The number one thing that you need to start doing is start saving. You can easily put away a few dollars a month to keep your nest egg nice and warm. If you do this from your very first pay check you will be able to live comfortably by the time you retire. Even if you have a retirement policy, this might not always be enough. Find ways to stretch your cash in order to make sure you are covered.

Know your retirement needs
When you stop working, life does not end for you; it is only the beginning. You need to sit down (with your partner if you have one) and decide what you want to do after you have stopped working. Many people decide to sell their house and move to the coast whilst others are happy where they are living. Whatever you decide, you need to make sure that you have enough cash to survive until the day that you die. It actually goes further than survival: you need to maintain the standard of your current lifestyle.

Invest in your company’s retirement fund
Many companies make sure that their employees are looked after when they retire, but employees often think it is just a money-making ploy. The truth is that it could save your life one day in a financial sense. If a company offers a retirement plan, invest as much as you can into it. Your taxes will be lower and you will receive interest over the amount of months your money is in that retirement policy. By the time you leave the company, you should get a sturdy amount every month.

Learn about your employer’s pension plan
Before you jump into the retirement policy, ask about it first. It is understandable that many people are uncertain about this, so it is good to ask for advice and do research. Find out how the plan works and what exactly it will cover for the amount that you pay at the end of each month. If you are married it would be a good idea to find out what the plan says about spouses. This way you can make additional plans if the company’s retirement plan is not what you are looking for exactly.

Do research about retirement investment
When you start working you should be doing as much research about investing and pension policies. Retirement annuities are nothing more than an investment in your old age and you have the right to know how it works. Inflation plays a big part in the return that you will get and you must understand how this works so that you can calculate how much you will get back after retirement. These policies are not standing still and there are a number of factors that influence the outcome. Empower yourself and know more about financial processes.

Do not touch your retirement savings
Times are tough all over the world and sometimes you land yourself in a pickle you need to get out of. Many people turn to their retirement fund in order to fill a few holes, but this is not recommended. Make it a point of almost forgetting of your retirement money once you start accumulating it. Not only will you disadvantage your older self, but you might need to review your taxes and pay withdrawal penalties. You might even lose certain benefits that you have grown accustomed to. Rather look for another solution.

Talk to your employer about starting a retirement plan
Every company should look after its employees in terms of retirement but this is not always possible. If your employer does not offer a retirement plan, talk to him or her about it and see what options you have. There are many different types of plans that may be more affordable for your employer to offer the employees. Let your colleagues help you with research before you take it up with your employer. A cheaper retirement plan is always better than no retirement plan.

Put money into an Individual Retirement Account
The IRA offers comprehensive solutions that you can use to supplement your retirement policy through the company that you work for. You can put up to $5,500 per year into your IRA and this amount becomes even more when you are 50 years or older. There are different IRA accounts and you should do research on them before you make a choice. Talk to people who already have IRAs and find out what their experiences are with it. This is also a great way for you to plan for retirement if you do not have access to a plan at work.

Find out more about Social Security benefits
Social Security is there to keep you secure in a financial sense and this includes offering retirement benefits. Do research and find out if you apply for it and what you need to do to activate it after retirement. Social Security pays out about 40% of what you earned before retirement and this can make a big difference if you do not have any other type of plan. You can calculate this amount on their website to establish a solid financial plan for your retirement.

CONCLUSION - I DO IT THE STEEMIT WAY :)