Retirement. Similar to every other stage of life, concluding one’s career to enjoy their golden years in peace is an inevitability. However, as economic downturns, recessions, and a skyrocketing cost of living have plagued the middle class, retiring at a decently young age has started to appear all the more unattainable, especially for those who are not adequately prepared.
In fact, the above factors have made many people young and old question if retiring in general is even a viable option. Although the waters of retirement planning may often feel uncharted and murky, there are methods of preserving the sanctity of one’s later years without feeling overwhelmed.
Should you be interested in learning more about effective retirement planning, be sure to continue reading Christopher “Chris” Scalese’s perspective below!
Understand (and set) your timeline
No matter your current age, it is imperative that you enter the retirement planning phase with at least one factor decided upon, and that is the age at which you plan to conclude your career. For many, this life event will take place somewhere in their mid-60s, around the time they can begin claiming Social Security benefits.
However, those with a passion for the work they do, the impact they make, or even just the routine of maintaining a career may delay this by five, ten, or more years. Knowing where you land on this spectrum will be essential in helping you decide when and how you wish to retire.Of course, the more time you have between starting your retirement plan and actual retirement will give you a better chance at building a more sustainable fund from which you can draw.
Determine your financial needs
Now that you have a rough understanding of when you would like to retire, it is important that you consider how you would like to retire as well. Do you intend to use this time to pursue your long-set-aside passion projects? Travel the world? Or will you be following a more traditional path that includes downsizing your home and moving closer to family?
Regardless of what you intend to do during retirement, you must plan accordingly. After all, you wouldn’t set off on a vacation you didn’t save or create an itinerary for. So, ensure your roadmap to retirement is as detailed as possible.
Additionally, be sure to leave room for the unexpected in your plan. As unfortunate as it may be, many health issues tend to arise around retirement age, and a number of current retirees are already facing the consequences of not allocating for long-term or assisted care, which can place undue stress and concern on their shoulders.
Consult your financial planner
While you may be able to complete the above steps on your own or with your partner, it is essential that you formally get the ball rolling on your retirement plan by meeting with a trusted and certified financial planner.
By doing so, you will gain invaluable insight into and exposure to a number of products, services, and options you could pursue to make your retirement plan all the more viable.
Furthermore, asking the opinion of a skilled professional will help you determine other factors that play into your overall retirement success, such as your tolerance for risk, your plans for your estate, and many more.
Keep in mind that the above points are only just the beginning of retirement planning. A truly successful plan will be multi-faceted, take time to fully conceptualize, and will likely change as the economy — and perhaps your own personal needs — do.
Should you be interested in gleaning valuable insight into personal finance, retirement planning, and other similar topics, be sure to visit Christopher “Chris” Scalese’s website.