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The average age of retirement in the United States is 65 years. You might think that you are a long way from retirement and you perhaps still have many years ahead to plan. However, retirement is an important time in your life and comes with many important decisions. It wouldn’t be a great idea to wait until it’s too late and then have to make rushed decisions. The best time to start planning for retirement is during your working years when you are strong and financially stable. Here are some key reasons to start planning for retirement.
As a law-abiding citizen, you have to pay taxes. However, some unnecessary taxes might eat through your retirement savings, leaving you with money problems you thought you had eradicated. A crucial part of planning for retirement is developing an appropriate tax strategy during your working years. We recommend you save money with your employer’s 401k plan, which makes you eligible for tax deductions. You could also build a tax-free savings account for your golden years.
The sandwich generation is responsible for caring for their kids and ensuring their parent’s age gracefully. According to recent research, 44% of middle-aged adults have young children below college level and have at least one parent who requires care and financial support. Planning for your retirement could ease the burden on your working children who have marriages, children, and jobs to tend to. Your retirement should include medical costs and plans for long-term care. You should also learn the basics on choosing a retirement home to help you find a place you will enjoy for a long-time. Find a place with a good residence for seniors with a good community.
A significant percentage of folks in retirement are under high stress and tension due to money troubles. Financial turmoil could also take its toll on your body and has links to adverse conditions like heart disease, poor sleep, diabetes, and migraines. When you plan for retirement in advance, you rest easy knowing you will not struggle to cater to your needs and stay afloat. You are also less likely to develop the conditions above because your body and mind will be at ease.
You might only get to retire once in your life. Therefore, you are pretty inexperienced with what happens when you finally hang your coat and spend the rest of your golden years waiting for your grandchildren to visit. It wouldn’t be a great idea to wait till you are at the threshold of retirement to determine what accounts will help you save more, whether you are eligible for social security benefits, and how you would handle a recession. Early planning will help you tie all the loose ends and consider all the factors that could affect your financial stability.
Since your post-career life could stretch up to 25 years, you had better think long and hard about how you want to spend those years. Planning for your retirement in advance helps you make informed decisions because you took your time to weigh the available options and choose the best one. You will also be less fearful of early retirement because you have everything in place to enjoy life after working hard for a long!
This is a collaborative post.
Welcome to Birds and Lilies! I'm Lou: mother, blogger and freelance writer. This is my lifestyle blog, where I talk about motherhood, infertility and IVF, beauty, my love for food and wine, as well as my thoughts about stuff, and our real-life and travel adventures.
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