4 Often-Overlooked Retirement Facts

Retirement may seem a long way off for some of you. It sure feels that way to me sometimes, considering I’m 26 and the retirement age is estimated to be around 70 when I get to that point. Ouch. So why in the world should someone my age be thinking about retirement now? Well, in short, because if someone like me starts now, I’ll be in a much better position financially when it comes to the point of actually retiring.

Today, we’re going to look at 4 facts about retirement that are often overlooked when planning for the future.

1. Extra retirement plans. 401k’s and IRA’s are not the only retirement plans out there. There are several others, including these two:

-419e plans- A plan where your employer can offer insurance that you can use after you retire.
- 457f plans- an employer assists the employee by essentially paying for some of all of the taxes the employee would have to pay on their IRA or 401k contributions.

2. You can collect social security while working. People on disability do this too; you can still work part time and collect on your social security benefits. They just won’t be as much as they would be if you were not working at all. Don’t strain yourself in retirement; if you need to keep working a little to make ends meet, you won’t lose those benefits you worked so hard for.

3. You can’t hold your standard of living. As much as you want to believe that the opposite is true, it really isn’t. Most people who have a middle-class income have to reduce their standard of living by 50 percent or more when they retire. That is a significant change; imagine only being able to pay for half of the things that you pay for now. Add in the fun numbers of inflation and the change in costs for pretty much everything, and you probably aren’t saving enough in order to live the same life that you are now.

4. Couples who don’t have a set plan by their mid-thirties are at the highest risk for a financially difficult retirement. This sounds like a really random statistic, and it kind of us. But the people who suffer the most are the people who have to support others. If you are in this category, now is the time to figure out what needs to be done in your retirement. Medical costs, end-of-life costs, and other things are more expensive when there are two of you, and burdening your family with it is both unfair and unnecessary. Find a financial adviser and make a plan.

Retirement. It’s never too early to think ahead. It’s never too early to make sure  that your retirement is enjoyable for you and your loved ones. So, save up, do your research, meet with an adviser, and get yourself on the road to financial freedom during your retirement. Have a great week, and we’ll see you here next week.

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