Follow These 5 Tips and You Enjoy a Stress-Free Retirement

Posted By Ziga Breznik, Last updated: March 11, 2020

happy retired couple on a motorcycle

For most people, nothing causes worry like thinking about retirement, but it doesn’t have to be that way. Considering your options and planning right now is the best way of keeping stress free and confident about options for your future. With recent volatility on the financial markets, some investors consider Gold IRAs. No matter your age, making a start today is always going to be your best option for a relaxed retirement, and with that in mind, here are 5 of our top tips for retirement savers – of any age!

 

Different Savings Approaches

savings growth - piggy bank with growth graph   

Under 50?

Save early, save a lot!

Terrifying as the thought might be, now is the time to sit down and figure out exactly how much you’re going to need to need for retirement by using an online planner like this. Once you know what that figure is, you can start working towards it.

50 – 65?

Really Ramp Things Up

Now you’re nearing retirement, you need to ramp up the saving. Ensure your pension contributions are as high as possible, and take advantage of any catch-up contributions available to you via your 401k.

65 +?

Don’t get lazy

Once you’ve been saving effectively for a few years, it’s easy to slip into autopilot mode. Keep checking in on your goals, your contributions and your options for increasing them.

 

Extra Opportunities

chart of growth

Under 50?

Look Outside the Office

A 401k isn’t the only way to save – look to IRAs for more options. A Roth IRA allows you to offset the impact of tax increases when certain conditions are met and a traditional IRA can allow you to access savings tools that you won’t have access to via your workplace 401k.

50 – 65?

Think About Consolidation

Once you’ve been investing for a while, it’s common to have various pension accounts in your portfolio. Managing all of these options can be messy and difficult. Consider consolidating multiple accounts into one main account that is more easily managed.

65 +?

Bolster your income

Even once you’ve started to draw from your retirement plans, there are ways to shore it back up with things like annuities and dividend paying stocks. Talk to your pensions professional for more advice.

 

Keep a Cool Head

Under 50?

Don’t Get Emotional

If there’s anywhere in life that you should keep a clear head, it’s investing. Don’t make the mistake of investing more when the markets are up and less when the markets are down – you’ll miss out on potential earnings. Always take the advice of a professional.

50 – 65?

Time for a change?

Hopefully, you’ll have started investing quite some time ago but if that’s the case you might find that in the intervening years, your interests, needs and abilities change. It might also be time for a change in your investment strategy.

65 +?

Make Plans for the Long Haul

When people plan for retirement, they often prioritize the early years of leisure. Don’t forget the later years, however, when you may no longer be able to travel or relax as you used to. Have a realistic think about what life might be like at 80 or 90, and have your advisor help you brainstorm about possible ways to prepare for it.

 

Stay Close to Home

House Calculator

Under 50?

Pay Off the House

If you managed to pay off your mortgage before retirement, it would give you a whole lot of peace of mind. To try and make this a reality, make extra mortgage payments. Either invest what you can, or use a amortization calculator to find out how much you need to pay if you want the debt to be gone by the time you retire.

50 – 65?

Make Plans to Stay Healthy

Health care is expensive and it’s not getting cheaper any time soon. Medicare goes some of the way, but it’s not clear how much it will offer in the future. Consider setting up a specific health care savings plan. Sometimes an employer will offer them, and sometimes you’ll have to set one up yourself. Either way, they’re not usually taxable, which is good news for all.

65 +?

Budget Your Pension Spend

Just like before you retire, drawing from your retirement funds should be subject to a budget. Drawing out less than 5% per year is a good rate to aim for, but talk to a professional to create a plan that’s personalized and specific to you.

Go One Better

Under 50?

Nix Your Credit Debt

One thing you don’t want to bring into retirement is debt. One of the easiest types to pay off is credit card debt, so try not to rack it up and if you have it, take extra steps to pay it off before retirement hits. Other types of debt that can sting in retirement are auto loans, mortgages and co-signing commitments.

50 – 65?

Get Specific About Retirement

Now is the time to think about your retirement in a little more detail. You need to get into the specifics of what it is you want to do and make sure your pension plan can accommodate it. Start thinking strategically to make sure the funds are available when and where you need them.

65 +?

Don’t be a Slave to Taxes

How, when and in what order you draw from your pension accounts has an impact on what taxes you pay and how long your retirement fund will last. Taxes are on the up, and everyone is liable for different things, so think strategically and take professional advice.

As you see, people of all ages can save for retirement and make the best possible choices for maximizing savings no matter how far – or near – you are to retirement itself. The best approach to take is constant awareness and control – don’t stress out, but keep an eye on your pension and retirement future and watch your funds and confidence grow.

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