We often fear that huge mistakes will sink our retirement plans, like unwittingly investing in a pyramid scheme or hiring a greedy adviser. Though these big errors will certainly hurt, often, it’s the little, seemingly good decisions that come back to bite us and ruin our plans.
It’s the age-old question every working American has asked at one time or another: how much money will I need to retire? Understanding the answer to this question can make or break your retirement savings plans. Many fail to save as much as they should because they think they need much less or because they are confronted with more urgent and immediate needs for cash. As a result, they struggle to make due after they retire.
You’ve probably dreamed about your perfect retirement situation. It’s fun to think about. But saving for retirement isn’t as fun. The fact is, though, saving for the retirement that you’ve always dreamed of requires strategic planning. It takes carefully saving to ensure that you can effectively fund your retirement years in order to live the comfortable lifestyle that you want. And the first step for saving for retirement is getting informed.
Having enough money saved for your retirement years can allow you to have the comfortable lifestyle that you seek. Gone are the days of depending on your company’s pension plan, and, if you plan to rely solely on Social Security checks for your retirement income, you’ll likely be very disappointed. Pension plans are dying out, and the government is offering less income for Social Security. In this day and age, saving for retirement is largely up to you. Your retirement income increasingly depends on how much you save and how you manage your money. So you need to be proactive and prioritize saving for retirement if you want to live comfortably.