At Dunncreek Advisors, we feel as though we get this question a lot. If you are wondering when the best, or right, time to start saving for retirement, the answer is yesterday. We say this not to worry you, but to stress the importance of a solid retirement plan. All over the internet, there are a million calculators telling you how much exactly you should put away. Where do they get their numbers? How does it all work? How can we know when the right time to save is exactly? Don’t worry, Dunncreek Advisors is here to help.
First Step: Are you Going to Retire?
Traditionally, to receive retirement benefits the general age is 65. However, early retirement benefits can be taken at age 62. For social security, however, the age increases until 67 for people born after 1959. In today’s world, a good majority of people have decided that they will not retire. If working part time is something you are interested in doing, it may not be a bad idea. If you are bordering the age of retirement and haven’t saved much throughout your life, it is advised that you seek an advisor who will help you gain the most profit in the least amount of time.
Step Two: What are Your Retirement Needs?
Sailing around the world? Living with your kids? Estimating your retirement needs will help you determine when you should start saving and how much you should save. Perhaps you plan to have your mortgage paid off by then. If so, are there any other expenses you can anticipate? Vacations, home improvement projects, etc.? Most people want to enjoy their retirement and live comfortably and affordably. To do this, saving for retirement early is the key. Building wealth when you are young will help to secure a comfortable future.
Step Three: Unanticipated Costs
While you may say that your mortgage is paid off and you plan on spending 20% less once you retire, it doesn’t always happen that way. Medical bills and unexpected costs can get in the way of comfortable living if you haven’t planned properly. Right now is a difficult time to talk about healthcare as the expense has gone way up, especially for those retiring. While Medicare is available, it doesn’t typically cover extended medical care and most of us will eventually need that in our lives. Saving early for retirement can greatly help cover the unexpected expenses later in life.
At Dunncreek Advisors, we have experienced professionals on staff that can help you with your retirement savings from start to finish. We can help guide you through saving for retirement, we can build your wealth, and then we can pat you on the back for a job well done once you’ve retired. We want you to feel confident in your financial decisions, including retirement. For more information on when to start saving for retirement, contact Dunncreek Advisors today at 612-436-3770 or send us an email at rdunn@dunncreekadvisors.com.