How to Plan for Retirement

A study by The Harris Poll and cited by Go Banking Rates last year found that one-third of Americans do not have any savings or retirement money at all. As the survey looked at past numbers, the figures of Americans without savings or retirement funds continue to grow.

Whether you are someone just coming out of college or you are middle-aged and approaching your retirement years, there are always steps to follow to plan for your winter years.  Although surveys have suggested that the youth do not prepare themselves for retirement, there are individuals who are concerned about the cost of living once they hit their 60s.

A lot can be done in advance to avoid the pain in your retirement days. Here are some tips to follow to plan for your retirement.

Budget first

In order to actually have a retirement, you have to learn how to budget your day-to-day, month-to-month and year-to-year expenses.  It’s best to establish a budget as early as you can – your budget should be your rent, groceries, expenditures, entertainment costs, etc. Click here for an in-depth look at how to budget.


What are your goals? How much do you want to have in your bank account when you reach 65? What do you want to do in your winter years? These are important questions to ask and goals to write down when you start planning for your retirement.

Goals part II

Besides what you want to do in your retirement, you have to figure out how you’re going to live.  What type of investments do you want? Are you going to strictly rely on your pension and savings? Would a part-time job be a good idea? These are very important questions to ponder in your retirement planning.

Don’t touch

Under any circumstances never touch your retirement money. Whether you’re maintaining a money market mutual fund or if you have a 401(k), always attempt to refrain from dipping into your retirement account to pay for emergencies, bills, rent or college tuition for your children.

Social Security

Although the social security system is unsustainable and will be worth less in value when you retire, it’s important to research the benefits of social security, the tax bracket and the approximate value of your pension.

Seek advice

Not everyone is a financial guru, so a good option if you can’t do it on your own is to seek help from a financial advisor, a financial expert or even retirees. It’s always good to receive various advice from all parties.