With a plan, you can determine how much money you may need throughout retirement and focus on how to achieve your financial goals.
Investing enough money for your retirement takes years of disciplined saving, perseverance and a long-term investment plan. Developing a retirement plan can help you determine how much money you may need throughout retirement and focus on how to achieve your financial goals.
When it comes to planning for your retirement, several factors are out of your control including taxes, inflation, and the performance of the financial markets. But, there are many elements that you can take charge of, including:
Some people postpone retirement planning because they believe Social Security will be enough. However, Social Security is only expected to replace about 40% of income for the average wage earner.* The rest will come from personal savings—including the money you save in your company's retirement plan.
The more years you have until retirement, the easier it can be to procrastinate. But, starting to save early is one of the most important factors in successful retirement planning because you can potentially maximize the power of compounding.
* Source: Social Security Web site, www.ssa.gov, Social Security Bulletin vol 68 No 2, 2008.