5 Tips to Keep Your Retirement on Track

Compton Accounting

September 5, 2018

First, know your numbers. Do you know how much income you need to maintain your current lifestyle in retirement? If not, you are like many others who don’t have a clear retirement saving goal. While working with a financial professional will help you drill down to an exact number, a good rule of thumb is that you will need approximately 80 percent of your current annual income in retirement.

Second, consider where your money will go. The lifestyle you want during retirement is another thing to consider now. Do you want to spend money on travel, entertainment and eating out when you retire? Don’t forget to factor in healthcare costs, which will likely increase significantly as you age, including the cost for long-term care.

Third, take action now. Perhaps the most important retirement preparation tip is to just do it! Make saving for retirement a priority (put if above college savings if you have kids) and set up an automatic debit to your bank account, or through your paycheck, to start growing your nest egg.

Forth, revisit your retirement plan. Your plan for funding your retirement should be updated periodically (at least every five years). Updates are based on the market, your income and expenses, and life events such as a child being born, marriage and other milestones.

Finally, ask for professional help. While you know your situation best, it cam be helpful to have an objective expert working with you to ensure you are doing everything you can to stay on track for a better retirement.

As you think about planning for retirement, don’t let balancing the life you want to live today with the live you desire in retirement add to your stress. Follow the tips above and get the advice of a financial professional to make sure your retirement is on track.

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