10 Tips for Retirement Savings

Posted by Steph Kaye on Thursday, June 9th, 2016 at 4:09pm.

At least 1/4 of your annual income should be set aside for retirement savings.  You should operate as if you will live to 100 years of age.  Perhaps you don't know how to begin saving for retirement.  Maybe you’ve been saving for years, but wish to bulk up that nest egg.

Lang Premier Properties presents 10 ideas that can help boost your savings:

Our ideas regarding what life will be like in our elder years has drastically changed over the past century.  It is no longer sufficient to plan to replace 3/4 of preretirement income.  A replacement rate of 100% is a much safer place to being.  

Baby boomers often have big plans for retirement and health care costs are likely to be a lot higher in the future, so it’s not obvious our expenses will be easily cut.  Taxes will likely go up to help decrease the national deficit.  

Planning to retire at age 62 is no longer realistic for most Americans.  More than half of the baby boom generation is not adequately prepared for retirement, especially if they retire young.  Benfits will be higher if retirement is delayed. 

It is no longer possible to follow your parents’ example as mid-career workers today are unlikely to see housing prices grow quickly and substantially, a blossoming stock market throughout most of their working lives, and generous pensions as experienced by the previous generation.  

Save at least 1/4 of your income.  Ten to fifteen percent just won't cut it given the low-to-nonexistent interest rates paid on savings accounts and paltry stock market returns.

You may need to plan for a second or third career.  Plan to retrain, retool and maybe even re-school for a new career. You must be always be marketable and always push yourself to take the next step in order to be employable.  

No one knows how long they’ll live, but it is prudent to plan as though you will live to 100.  Afterall, women born in today's age have a 1 in 4 chance of living to age 95, especially if they are educated and have access to health care. 

Invest even if you are uncomfortable doing so.  Don't allow fear to paralize you as doing nothing is the wrong response.  It’s better to save something and put it in a diversified fund with a professional manager than to do nothing.  At the very least, you will have a chance at amping up your savings account.  

Picture your retirement years and get in touch with your future self.  Begin to care about your future self and take good care of the person you plan to be.  

Learn the basics.  Even a simple financial literacy class can increase savings rates later on in life.  

Consider your human capital.  Train to be successful in the last third of yur life by investing in friendships, communities, and families, because it is those networks that will help us age more successfully.

 

If you'd like to learn more, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.

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