Steps to Take When Planning for Your Retirement

Do you have a retirement plan in place? Most people do not thinking that they won’t need to worry about retirement for a long time. The reality is that everyone will at some point retire the only question is whether they will have enough money to have a pleasant retirement.

Social Security During Your Retirement

The social security system is underfunded and there is a strong possibility that in the next couple of decades it will go through a massive overhaul. During the overhaul benefits may be reduced or cut completely. If you were thinking that the government would take care of you during your retirement the reality is at best you will just get enough to cover your basic needs but even that is a stretch given the economic shape the country is in.

Getting Out of Debt Before You Retire

One of the most important goals you can have is prior to retiring you need to get out of debt. There are millions of Baby Boomers out there who are retiring with massive amounts of consumer debt. These debts eat into your income and if your income is fixed because you are on a pension it will reduce the quality of your life. What you have to do starting right now is come up with a plan of how you will get out of debt that does not rely on winning the lottery. You can get out of debt but you need to stay consistent and give yourself time.

After you have gotten out of debt you need to start putting money towards your retirement. At first this amount may seem small but if you put it inside a 401k account it will grow on a tax deferred basis so you are able to maximize the size of your retirement savings. If you applied these simple suggestions the odds of you have a great retirement will improve dramatically.