Top 7 Retirement Planning Tips for Generation X
In today’s day and age no one requires retirement planning more than generation X, as shown by recent studies. Everyone born between year 1965 and 1980 is considered part of Generation X, and these individuals today are bound to be nearing retirement age, but typically do not have much saved up (especially post the effects of recession).
As a Gen X-er, being unprepared or under-prepared could be potentially damaging in terms of financial security, and might push most of you to have to work (part-time or even full-time) just to meet your financial needs post retirement, if you have not managed to make the necessary savings by now.
Although saving for retirement now could be challenging, since you are set in your ways and accustomed to spending, there is still time to make a difference. However, this process involves starting now and putting away at least half of your current earnings into retirement accounts, in order to safeguard your financial future.
The following tips can help you achieve better savings by the time you retire:
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Study your financial situation to understand where you stand
The first step is studying your finances in order to understand where you stand today. You must, starting now, become an expert analyzer of your balance sheets to be able to make important financial decisions. Make notes on how much you have managed to save up until now, and what you spend every month.
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Understand how much you need to keep aside in terms of savings
Planning for retirement starts by comprehending how much you will need to keep aside in terms of savings. Based on your existing lifestyle, income and expenses, figure out how much you will need once you stop earning, to be comfortable after you retire. Remember to consider healthcare needs and provision for rainy days too.
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Use your employer’s help to further save for retirement
Most organizations provide insurance coverage to financially support their employees and help them save for retirement. Make use of this, but also save above and beyond what is being offered to make sure there is enough in terms of savings in the retirement account.
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Brush up on knowledge about retirement savings
It becomes increasingly important to better understand what can be done for you to achieve your retirement goals. Knowledge is key, and with the help of a retirement counselor or advisor, you can learn everything there is to know and gear up for retirement savings.
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Work with a professional financial advisor
Consulting a professional financial advisor can work wonders in understanding the various retirement investing options available and how to make the best use of them. It also helps a great deal to know what you are doing right (and what else you could be doing) to get the ideal retirement savings in the bank.
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Adapt to changing markets and plan for inflation
With so much competition and growing expenses, it’s important to be able to adapt to the economy, inflation, market fluctuations, necessary qualifications to excel at work, etc. Factor in the world economy as well as local market fluctuations, and your basic cost of living could double or even triple by the time you retire!
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Strive to continue educating yourself
Adapting to change becomes necessary when you’re planning for retirement. Life is a constant learning process and there is so much more to learn, especially with finances. It’s a good idea to invest time and energy to educate yourself, so that you can take on the future and live a comfortable retirement.