As you approach retirement, it’s important to be aware of all the resources and benefits that are available to you.
In this post, you’ll be furnished with five retirement resources and tips you should know about while making retirement plans.
Why You Need a Retirement Plan
Financial security is one of the biggest benefits of retirement planning. By saving money now and investing it wisely, you can ensure that you will have enough money to live on during your retirement years. Also, you will not worry about money during your golden years.
Peace of mind is another great benefit of retirement planning. When you know that you have taken care of your finances and have a solid plan in place, it can take a lot of stress out of retiring. You will be able to relax and enjoy your retired life without worrying about whether or not you will be able to make ends meet each month.
Finally, by planning for your retirement now, you can ensure that you will be able to spend your golden years doing what you want! Whether it’s traveling the world or spending more time with family and friends, when you retire with a plan in place, yout mind will be at rest.
Top Retirement Resources And Tips
Social Security is a government program that provides income for retirees. You can begin collecting benefits as early as age 62, but your benefit amount will be lower than if you wait until full retirement age (FRA), which is currently 66 years old.
If you delay collecting benefits past the FRA, your benefit amount will increase by 8% per year up until age 70.
Employer-Sponsored Pension Plans
Many employers offer pension plans as part of their employee benefits package. If you have a pension plan through your employer, make sure to find out how it works and when you can start collecting benefits from it.
401(k) or Other Employer-Sponsored Retirement Savings Plan
A 401(k) is a type of tax-advantaged account that permits employees to save for retirement on a pre-tax basis. If your employer offers a 401(k) or other similar types of plan, consider contributing to it—especially if your employer offers matching contributions.
Individual Retirement Accounts (IRAs)
IRAs are another type of tax-advantaged account that anyone can open, regardless of whether they have an employer-sponsored retirement savings plan.
There are two main types of IRAs: traditional and Rot. With a traditional IR, contributions are made on a pre-tax basis, but withdrawals in retirement are subject to taxes, whereas, with both IR, contributions are taxed upfront but then grow tax-free and can be withdrawn completely free from taxation in retirement.
Last but not least, it’s important to seek professional help and get financial planning done before taking any major decisions related to investments after retirement. This would help understand what options best suit an individual’s needs along with the risks and returns associated, so one could make a more informed decision while approaching their golden year.
One important thing to do when planning for retirement is to make sure you have enough saved up.
Any of the retirement resources listed in this post can help you out. This means putting away money every month into a savings account or investing in a retirement fund. It may seem like a lot now, but it will be worth it later down the road.
The information you'll find in this post is purely for informational purposes and should serve as a guideline only. It's provided by SeniorManifesto.com and we endeavor to keep the content up-to-date and accurate. However, no representations or warranties are made with regards to its completeness, accuracy, reliability, suitability or availability for any purpose.