Seven Tips for Planning for Retirement: Insights from a Massachusetts Elder Attorney

Now is the right time to start saving for retirement and preparing your estate. Whether you’re a young adult launching your first career or a seasoned employee with decades of work experience under your belt, the funds you set aside now will make a huge difference in how comfortable you are during your golden years. And it will save your family endless hours of stress and grief if you also plan your will now.

To help you get the ball rolling, here are seven tips that can help you make the most of your savings strategy:

1. Know How Much Retirement Funds You Will Need

Financial consultants offer easy-to-use tools that will estimate how much you will need at a set age, and how much you should set aside on a regular basis to reach that goal. Using one of these calculators can help you to map out your savings strategy. Seeking the advice of a Andover MA elder lawyer or estate planning attorney Adam Tobin can be immensely helpful as well.

2. Enroll in a 401(k) Savings Plan

If you work for someone else, then inquire with the human resources department about whether the company offers a 401(k), a traditional pension, or other long-term savings vehicles. Not only do these offer significant tax advantages, the money usually comes directly out of your paycheck, making this perhaps the easiest way there is to save for retirement.

All Baby Boomers will be age 65 or over by 2030.

Workers can start claiming Social Security benefits starting at age 62.

50% of Americans age 55 and older are now retired.

3. Or Enroll in a SEP-IRA If You’re Self-Employed

If you’re self-employed, then look into starting a self-employed IRA, also known as a SEP-IRA. These are program set up by the government that offer those who work for themselves many of the same advantages that employees enjoy with a 401(k).

4. Set Up and Follow a Budget

Budget how much you’ll need between now and retirement to reach your savings goal, and adjust the rest of your finances to fit around that amount. While exercising this self-discipline may be difficult at times, doing so is essential for enjoying a comfortable retirement. In time you will thank yourself for the sacrifices you make now.

5. Stay Informed About Social Security Changes

Don’t count on Social Security to be there when you need it. To stay solvent, the government has already adjusted the minimum retirement age for Social Security recipients more than once. In the future, it’s possible that benefit amounts and other features of the program will be adjusted multiple times.

6. Explore Ways to Save and Earn Money

Explore ways to save and earn money without reducing your current lifestyle. For example, you may forego eating out at a restaurant once a week, directing the money you save into your retirement account. Some consumers clip coupons, buy in bulk, and use other tricks to keep more money in their bank accounts. You’ll find plenty of Internet sites that explain how these techniques work.

There are several ways to continue earning money while receiving Social Security retirement benefits. These include part-time jobs, seasonal work, and freelancing. You can explore these options from the Social Security Administration.

7. Visualize Your Retirement

Take some time to think about the things you would like to do when you’re retired. Imagine yourself traveling the country in an RV, sightseeing Europe, or whatever matches your interests and passions. It’s amazing how taking the time to do this can supercharge your motivation, making it easier to save for retirement. Keep in mind the need to plan for final expenses as well. A living trust attorney can provide specific guidance on this important matter.

By following these handy tips, you’ll find yourself well on your way to meeting your long-term financial goals. Good luck and happy saving!