Retirement is something we can dream about and look forward to for most of our adult lives. It can be a constant point of worry, though. It doesn’t matter if your retirement is months, years or even decades away, either. Will you save enough to keep your current lifestyle? Will your investments grow at an expected rate? Will you outlive your savings? Financial advisors agree that the best way to ease your worries and anxiety about retirement is to get a firm grip on your financial future. Here are three steps you can take to properly plan for your retirement so you can put your mind at ease:
Choose your year of retirement
The first step is to choose when you want to retire. If your retirement is decades away, it’s tough to predict exactly what you will be doing and how much you will be earning. It’s still a good idea to pick an age and then work towards that goal. The date is never set in stone, but having an estimate will help you and your financial advisor plan your retirement.
Project the value of your savings
The second step is to estimate how much your future value needs to be worth in order to retire. A retirement planning specialist at The Beacon Group of Assante Financial Management Ltd. can help you plan your future contributions and estimate your rates of return in order to get your savings to hit your retirement goal. The amount of money you need to save will depend on what kind of lifestyle you plan on maintaining when you hit your planned retirement age.
Decide your type of savings
The last step is to decide how you would like to save to reach your projected value. If you are worried that you will outlive your savings, you can choose to build a dependable income source that covers your basic lifestyle needs for your lifetime. This may come in the form of guaranteed or highly secure plans like life annuities or government pension benefits. A portion of your nest egg can be invested for growth as well.
Taking these three steps can help alleviate your retirement concerns and start you on a path to meet all of your life goals. If you need help or guidance with retirement planning, contact a financial advisor at The Beacon Group of Assante Financial Management Ltd. They will work with you to put together retirement projections and plans that will help you solidify your retirement.