Retirement should be a time to relax, travel, spend time with friends and family, and enjoy the fruits of many years of labor. However, for many Americans, retirement planning may not be at the forefront of their minds when at the start of their careers. Fortunately, even workers who are in their 40s and 50s may benefit from deciding to create a retirement plan.
Aiming for 80 Percent
When considering a target retirement income, planning professionals recommend that workers create a retirement plan that will enable them to have the equivalent of 80 percent of their working income. If Social Security and pensions will not be enough, IRAs, 401(k)s, and taxable savings accounts can help fill the gap. Those who discover they may not have enough time to meet the 80 percent mark before they retire may need to boost their savings balances and seek out more creative, legitimate streams of revenue such as consulting or another side job. Cutting spending will also prove to be helpful. Conducting a thorough budget review can help workers identify ways they can reduce their spending and bolster their savings.
Weighing the Options
For many, reaching the 80 percent target will mean deciding between working a side job at the present time or delaying retirement by a few years. The difference between the two will largely be a matter of preference. Those who wish to pursue a side job or extra stream of income have the advantage of the proliferation of part-time jobs that can now be done from home. Creative individuals may wish to make and sell homemade items for extra income. Writing, online tutoring, and selling old furniture and other extra items on eBay may also generate income that can be used for savings. Online survey and secret shopping companies also hire workers and offer more flexible scheduling that can easily fit within a normal full-time work week. There are also more traditional means of earning income such as babysitting or renting a room or extra property to tenants.
The time to plan for retirement is now, and a worker is never too old to start. Gary M. Kaplan is a CPA is a retirement planning specialist who is qualified to help individuals of all ages create a retirement plan. Call or visit our website today to learn more about how we can help you successfully plan for retirement.
