Even if you are just starting a new job or are unemployed right now, it is best to start early and start thinking of retirement. Why? Mainly because saving for retirement right now is becoming more complex and your bank savings with the small interest you receive annually might not be enough to fit your lifestyle when you're thinking about drinking a margarita on a beach when you're 80 years old.
You have to consider life expectancy and retirement goals as well as having the financial resources for you to meet basic needs and at the same time enjoy your retirement.
And if you're thinking Social Security, company pension and savings? Those three things might not be enough for you to live on or even to get you to your golden years.
Right now, yes, as early as now, financial advisers are asking everyone to take into account changing their personal attitudes towards retirement because currently, retirees are interested in still working during their advanced age and are more concerned about healthcare than lifestyle and recreation.
Here are the basics:
1. Savings: Pat Obi, a professor of finance at Purdue University Calumet and author of the book "We Must Change the Way We Live," recommends doing specific calculations to set a savings target. There are online calculators that can help you crunch the numbers and The Social Security Administration's online planner can also help.
2. Starting Out: It's not always possible to set a career-long savings plan. New workers should consider and take advantage of an employer-based plan and contribute to match their employer's. In addition, Independent Retirement Accounts can help with your saving.
3. New Accounts: Getting access to a retirement account is difficult for some, which is why some states are creating standard employer-based accounts. Your state may also have created policies for retirement savings accounts for small businesses and even for the self employed. Contributions can be deducted from the worker's pay or from a bank account. Reach out to your employer or state retirement center for more information.
4. Social Security: Social security is the biggest component when it comes to retirement. The SSA can provide estimates of retirement benefits to help you in planning. While waiting until full retirement age can give you substantial gains, for some it can be beneficial to begin taking Social Security early. And if you're worried about the future of Social Security, Obi has this to say online:
I'm not a pessimist at all. Of course it is going to be there.
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