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When Is the Right Time to Start Planning for Retirement

Most everyone agrees that saving for retirement is not only important, but also necessary. However, the act of saving for retirement isn’t always as easy as people want to believe. In fact, many people underestimate how much money they will need to sustain them through retirement and overestimate how much they’re actually putting away. In today’s post, we will discuss when is the right time to start planning for retirement and what you can do to help set yourself up for a stable financial future.

If you’re worried that you’re not on the right path for retirement or you want to make sure you’re getting the most out of your benefits, Brokerage Specialists in Grand Island is here to help. We offer retirement planning services, portfolio risk analyses, and so much more to help you feel secure in your future finances. Want to know more about what we can do for you? Explore our website and reach out to schedule a consultation with one of our retirement planning experts.

Start Saving Early

When it comes to planning for your retirement, the earlier you can start planning and saving, the better off you’ll be in the future. With that in mind, you’re not expected to save half of every paycheck from the time you start your first job to the time you decide to retire — for most people, that goal isn’t very realistic. However, even putting aside a small amount from each paycheck is better than saving nothing at all, and you may even find that a small amount can grow quite a bit thanks to compound interest.

In an ideal situation, each individual would be able to start saving and planning for retirement in their early 20s, which would give each person’s money time to grow enough to allow them to live a comfortable lifestyle during retirement. Unfortunately, not every person is able to start saving as soon as they graduate for various reasons, but even if you can’t start saving right away, the earlier you start, even if it’s not until you’re 25 instead of 22, the better off you’ll be in the future.

Know Your Needs

Each person is unique, and one person’s comfortable lifestyle can be extremely different than another’s. In the early stages of retirement planning, one of the most important factors you need to consider is your needs. According to the United States Department of Labor, experts estimate that most people will need 70 to 90% of their preretirement income in order to maintain their standard of living. If you’re not sure what that might amount to, consider what you spend in a month or a year. Would you be happy living below your current standards? If the answer is no, then you may want to take a look at your retirement plan and try to figure out if you need to work harder to make sure you have everything you need to stay on the right path to retirement.

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Consider Cutting Your Expenses

As mentioned earlier, not everyone is able to start saving for retirement right away, and even if you are, you may not be able to save as much as you would like. If you aren’t able to save as much as you would like, it may be worth it to try and find a way to cut your expenses so that you can afford to set aside more money for your retirement. Consider putting together a budget to help you determine how much you can spend each month and how much you can save. Creating a budget may also help you eliminate unnecessary expenses.

Seek Help From Experts

Retirement planning, especially at a young age can leave some individuals feeling overwhelmed and unprepared. If you’re worried about your financial future, contact the experts at Brokerage Specialists! We offer an extensive list of services to help residents throughout Grand Island prepare for their retirement the right way. Explore our website to learn more about how we can help, and reach out to us by phone or through our online contact form to schedule an appointment.

We look forward to helping with your retirement planning!