Retirement planning can be a stressful, but exciting time in someone’s life. By being financially prepared, though, the process can be a simple one. This post outlines some ways to help ensure a financially-secure retirement, whether it’s right around the corner or years away.
Choose a date
Every year, this would be the date that you increase your contribution amount to any retirement savings plan you may have, such as a 401(k). It could be any date you wish; perhaps a date that would be easy to remember (like a birthday or anniversary) or a date that might coincide with an annual pay increase. Even just a small amount each year can make a huge difference in the long run—experts recommend increase your retirement planning rate by 1 percent of your gross pay annually. If you can, make it 2 percent. How big of a difference can this make? Let’s say your annual salary is currently $50,000. At this rate, in 25 years you can have an additional $316,000 in retirement savings.
Do the pay-off math
Figure out what it will take to guarantee you are mortgage-free when you reach your retirement. If your mortgage won’t be paid off, consider increasing your payments so that it will be. This will lift a huge financial burden when you are finally able to retire.
Try to wait when it comes to receiving your Social Security payments
If you can, wait until full retirement age (66) instead of the minimum age allowed (62) before you begin collecting Social Security payments, because it will pay off tremendously. Collecting your payments beginning at age 62 will come with a huge penalty.
Whether you are getting ready to reach retirement age or you are hoping to retire early, Peachtree Financial Solutions may be able to help if you need a lump sum of cash to pay for your bills and expenses once you are no longer working. If you are receiving life contingent annuity payments, they might not be enough to handle all of your expenses. At Peachtree Financial Solutions, we can turn those long-term periodic payments into a lump sum cash payout. By receiving cash now through the sale of life contingent annuity payments, you can have more control over your money, which can potentially make it possible to retire much sooner than you initially planned. Contact Peachtree Financial Solutions today to learn more about how you can receive a lump sum of cash through the sale of structured settlement payments.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.