Top Five Tips for Retirement Planning

Most people need to work to support their lifestyle but look forward to retiring one day. Even if retirement is far off, planning is important, as the failure to formulate a retirement strategy can cause financial hardships and stress and may delay people’s retirement. While there are many things people should consider to prepare for their eventual retirement, some are more important than others, such as the five tips set forth below. If you want to learn more about how you can plan for retirement and what estate planning measures you can employ to protect your interests, it is smart to meet with a dedicated estate planning lawyer to discuss your options.

Top Five Tips for Retirement Planning

Tip One

The first and most critical tip for retirement planning is to start saving. Even if you can only put away a small amount each month, the earlier you begin to save, the more your retirement savings will grow over time. Many jobs offer 401Ks, which as of 2023, allow people under the age of 50 to save $22,500 per year. Further, many employers offer matching benefits, which means they will contribute funds to your account. You should also consider opening and contributing to an IRA to maximize your retirement savings. In 2023, people under the age of 50 can contribute $6,500 per year to IRAs.

Tip Two

The second thing you should do to plan for retirement is to assess when you want to retire and what your cost of living will be post-retirement. This is important because it allows you to determine how much you must save each year going forward to ensure that you are financially secure in the future.

Tip Three

Third, you should develop a plan for obtaining health insurance. While people are eligible for Medicare at the age of 65, some people wish to retire earlier. Further, Medicare alone is often insufficient to cover the cost of medical care for older individuals. As such, you may need to purchase supplemental insurance or set aside funds to pay for your care.

Tip Four

Next, you should try to reduce your debt as much as possible. Paying down car loans, student loans, and mortgages will allow you to contribute more to your retirement savings and savings in general. Further, the less debt you have post-retirement, the less money you will need to expend each month.

Tip Five

Finally, you should speak to an estate planning attorney to determine what other measures you can take to plan for retirement and post-retirement life. An attorney can advise you as to whether you should purchase life insurance or transfer assets to prevent tax implications or allow you to recover Medicaid benefits.

Confer with an Experienced Estate Planning Attorney to Discuss Your Needs

Many people put off planning for their retirement because they think they have time, but it is important for all people who work to engage in retirement planning, regardless of their age. If you need assistance planning for retirement or developing an estate plan, it is smart to confer with an experienced estate planning attorney as soon as possible. Call Gregorek & Associates at 425-284-3450 or fill out our contact form and we will be in touch to schedule a meeting.