After last week’s article, you now know how important it is to begin saving earlier rather than later for your retirement, but have you also considered making a retirement plan? When you plan for your retirement, not only do you eliminate some of the stress of the unknown, but you also set yourself, and your family, up for a successful future. Here are seven reasons why having a retirement plan is a good idea.
You will no longer have to worry about your source of income.
A main source of worry with our clients is where their money is going to come from during retirement. As much as we would like it to be, Social Security was not designed to be your main source of income. The Social Security Administration estimates that its payments will replace only about 40% of the average wage earners income after retiring, meaning you will need a way to make up the rest on your own. With the help of a retirement plan, you will be able to figure out where your income will come from.
You cannot work forever.
While we would like to think that we can continue working at the same speed forever, it just isn’t possible, nor would many of us want to. Therefore, thinking you will be able to work to fund your same standard of living just isn’t possible for many of us. Planning your retirement wisely will allow you to retire when the time is right, not when you have to.
Your retirement can be filled with travel and bucket list worthy activities.
When you picture your retirement, do you see yourself traveling and doing all the things you’ve always wanted to do but haven’t had the time or money to do while you were working? Maybe you were busy moving up in your career, having a family, or buying a home. By planning for your retirement, you WILL have a chance at having the retirement of your dreams!
It will be easier adjusting to surprise expenses and financial needs after you retire.
One benefit of having a retirement plan is being prepared for any surprises that might get thrown your way, such as a flooded basement or unexpected medical costs. By having a plan in place, you can be prepared for these unexpected, and costly, surprises.
Help to avoid any dramatic change in your lifestyle post retirement from your job.
When you retire not only do you want to be able to do everything on your bucket list, but you also want to be able to live the same lifestyle you had while working. Without planning, you may end up with a retirement that looks drastically different than the one you imagined.
Not be a burden for your family.
As you get older, you won’t want to depend on your family for help and be someone else’s responsibility. You worked hard all your life and deserve to be fully dependent during retirement, and having a firm plan set will allow you to be.
Allows you to provide for children, grandchildren, and other family members.
On the other side, while you may not want to fully support family members during your retirement, you may want to still contribute in some way, whether with your children or grandchildren. By creating a retirement plan, you have a better chance do this in the future.
While the information outlined above is extremely helpful, the best thing you can do is schedule an appointment with a certified financial planner who can help you create a retirement plan that is specific to your individual situation and goals.
Westco Financial Group cares about your retirement and wants to help you be as prepared as possible. Call 516-593-5070 or email clientsvc@westcofinancialgroup.com to set up your complimentary appointment!