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In Spring, Some Thoughts Turn to Retirement

| May 21, 2018
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It's never too early to start planning for a comfortable retirement. 

Consider this: At age 65, only five out of every 100 retirees are financially independent. Twenty-two must continue working, 28 depend on Social Security, welfare, or charity and 45 depend on relatives for some (or all) of their support. 

The right advance planning will help you have the right strategy in place to live the kind of retirement you want. Naturally, money is a key component of retirement planning. All too often, people ignore their retirement needs until retirement is almost upon them and then find themselves financially unprepared. Generally, funding for most retirements comes from a combination of sources--Social Security, a company retirement plan, and the individual's own retirement and investment program. 

During retirement, the expenses of buying a primary residence and raising a family are usually gone, so a comfortable retirement may be maintained with fewer dollars. Unless, of course, you are planning to spend your retirement globe-hopping, pursuing an expensive hobby, or in some other way that will require a substantial amount of funds. It's been estimated (conservatively) that most people need from 60 percent to 80 percent of their annual pre-retirement income during their retirement years. 

These are a few of the available options to help meet your needs if your estimated retirement expenses exceed your current income (and that may be the case for many of us!): 

  1. Set aside more money in investments now
  1. Look for investments that offer a better rate of return. 

      3. Delay retirement, or plan to work part-time while retired. 

These days, people are staying healthier longer, and living longer lives. In your retirement planning, be optimistic about your own life span.

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