It is important to set a retirement age goal it helps one create a plan to achieve your financial goals and live comfortably in retirement. The following are the importance of setting up a retirement age goal:
Create a roadmap: Setting goals helps you create a plan to get from where you are now to where you want to be.
Avoid running out of money: A retirement plan can help you calculate how much income you can safely withdraw from your portfolio and avoid running out of money in retirement.
Plan for your desired lifestyle: A retirement plan helps you accumulate enough money to pay for the lifestyle you want to enjoy in retirement.
Make better career decisions
A retirement plan can help you work around a career that helps you achieve your financial goals.
Here are some tips for planning for retirement:
Estimate your expenses
An accurate estimate of your retirement expenses will help you determine how much you need to save each year.
Update your plan
It’s a good idea to update your plan once a year to make sure you’re keeping on track.
Consider longevity risk
Actuarial life tables can help you estimate the longevity rates of individuals and couples.
Consider unforeseen emergencies
A good retirement plan can help take care of any unforeseen emergencies.
Consider your Social Security benefits
You can visit the Social Security Administration website to get a complete understanding of your Social Security benefits.
174
6
1 Guest(s)