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4 Ways To Plan For Retirement

Your priorities of planning for retirement may change as you age. When planning for retirement, four things to consider are your income, home mortgage, future planning, and managing debt. Balancing your income, debt, and life's unexpected challenges as you age is essential to preparing for a financially secure retirement. Read on for four things you can do to prepare for retirement. 

Happy Retired Elderly Couple

Know Your Retirement Number

Knowing how much income you will need for retirement can help you keep track of your goal. When calculating your retirement number, consider the age you claim social security, any retirement contributions, your current salary, and the age that you want to retire.  In a recent MoneyRates article, I discussed that "To maintain a resemblance of your current financial situation, plan to have 80% of your current annual income. If you will be retired for 30 years and earn $80,000 annually, your retirement savings goal would be $1,920,000."  

Calculate your retirement number on NerdWallet.

Your priorities of planning for retirement may change as you age. When planning for retirement, four things to consider are your income, your home, planning for the future, and managing debt. Balancing your income, debt, and life's unexpected challenges as you age is essential to preparing for a financially secure retirement. Read on for four things you can do to prepare for retirement.

Your Home

Your home and whether or not you have a mortgage is a significant factor in making retirement decisions. When preparing for retirement, you should consider whether your mortgage will be paid off or if you are interested in a reverse mortgage. Reverse mortgages are confusing and risky, so considering all of your options is essential. Whatever you decide, your home and the equity you have built over the years can be a financial safety net.

Reverse Mortgages

Planning for the Future

One of the financial concerns of retired people nearing retirement is medical care. As we age, we tend to require more medical attention. To prepare for medical concerns, evaluate the medical plans offered by your employer after retirement. Preparing should also include considering long-term care insurance. Many people may need long-term care insurance, but those who are more likely to need it are individuals with chronic illness or disability, older persons, women, and people living alone.

Managing Debt

Planning for retirement at an early age enables you to keep your retirement plans on track. Paying off your mortgage early, carefully considering refinancing opportunities, and estimating your income and expenses throughout your life can keep your debt in check. Completing annual checkups on your retirement savings and income can prepare you for a financially secure retirement. Retirement savings and income can prepare you for a financially secure retirement. 

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