While retirement planning and strategies are a hot topic in financial circles, it appears most Americans only begin to think about what the next phase of life might look like in their last decade of work. According to the American Association of Retired Persons (AARP), more than 48-percent of American households headed by someone age 55 or older have no established retirement savings.
Whether you have been saving for years or are just beginning the process, the questions around planning to leave the workforce can be intimidating. How do I know what tools will help me make decisions? What is the best retirement calculator? How do I calculate my retirement? Answering these questions is easier when you have a big-picture retirement strategy in place, when you understand what tools are available and when you know how to use those tools.
Decision Making Tools
With any major decision in life, the right tools can make all the difference. With all the options out there, it can be difficult to know which is the best retirement calculator. Designed specifically to support individuals who want to learn more about their retirement options, the AARP Retirement Calculator provides an individualized snapshot of what your financial future might look like. It also provides insights on each page – marked with an information icon – that explain the questions they are asking and why those questions are important. Follow these simple steps to use the AARP Retirement Calculator:
- First, the retirement calculator will ask questions about your household status, current retirement savings and current salary.
- Be sure to include information about any supplemental retirement income, such as Social Security or pension payments.
- Consider how long you plan to remain in the workforce and set a retirement goal.
- Think about what you want your lifestyle to look like in retirement. Do you want to work part-time? Do you want to travel? Do you want to upgrade your lifestyle? Or downsize your home?
- The retirement calculator will then provide a graph of your money now and estimated financial picture in the future.
- Finally, the tool will present options for ways to either save more for your ideal retirement or how to stay on track.
When using the AARP Retirement Calculator – or any retirement calculator tool – it is important to remember that the information provided is intended to be used a resource, not to provide specific investment advice. AARP encourages anyone using the tool to also consult with a financial professional to discuss retirement planning.
Tips for Success
Any financial advisor will tell you that it is never too early to begin thinking about retirement. If you are ready to start planning or assisting a loved one in the process, here are a few tips to save time and money in the long-run:
- Pay off as much debt as possible as early as possible
- Create a realistic and manageable living budget for now and for the future
- Consider current and future health care needs
- Take care of costly home repairs and improvements
Planning for the Future
With decades of experience supporting seniors and their families to find their ideal retirement, living and care environments, Tutera is uniquely suited to serve you and your loved ones as you explore options for living and care. Call 877-988-8372 to schedule a no-obligation consultation or visit our website to learn more about the Tutera communities.
