Have you ever thought of what to do after you retire? Have you ever thought about your life after you are free of employment? Thinking about how young you are to start thinking about retirement plans, you may never have entertained this idea. However, to ensure that you will have a satisfied life after retiring, as early as possible, you need to come up with a well-constructed retirement plan.

To help you start planning, here are some tips you can use.

1. Think of what you want

Before you reach your retirement age, think of what you want to do after you retire. List down all your objectives and the goals you want to achieve. Be as specific and descriptive as you can so you will have a clear view of your goals. For example, list down the places where you want to go and the things you want to do there.

Try to limit your goals first. Start with the most important ones. You can slowly outline them if you still have a vague idea on how will you spend your free time. This step will help you focus on your goals and make them more achievable.

2. Start saving
If you are already saving, that is good. Saving now will make you better prepared. If you are not, then you better start now. It is like buying yourself a big gift in the future. You do not need to start big. Start with small amount then challenge yourself by increasing it every month. Saving for retirement should be your priority. As much as possible, stick to your plan and continue saving. You should take your savings first before you allocate your budget for food, clothes, and other expenses.
Cut your expenses and prioritize only the important. If you want to entertain yourself during free time, allow yourself a treat maybe once or twice a month. Also, think of other ways to earn money. Think of turning your hobbies and skills into a real income. You will have a chance to showcase your talent while enjoying and earning at the same time.

3. Take care of your health
All of your saving and plan will be useless if right after your retirement, you will be lying in bed beause of some illness. Be as healthy as possible. Do not hesitate to visit your dentist every once in a while and have some medical tests and preventive exams for your health evaluation. Eat healthy, take some time to exercise, and get enough sleep.
4. Know your employer’s retirement savings plan and pension plan
If your company has retirement savings plan, for example, 401(k) plan, sign up and contribute. If you do, your taxes will be lowered. You will realize how compound interests and tax deferrals can make a big difference to the money you can collect. Further, think about the plan you made. Think about how much would you need and how long will it takes to get that money while staying in the plan.
If they have pension plan, check to see if you are qualify and know what your benefit is worth.
5. Know your Social Security benefits
We would be needing the Social Security benefits to support our retirement plans. About 40 percent of what we earned before retirement is paid by Social Security benefits. Make an estimate on how much benefits can you get.
If you want to start collecting your benefits, keep in mind that the later you collect the better. You will have a greater benefit if you wait longer. You will also be eligible for delayed retirement credits. This would allow an increase in your benefits every year until the age of 70.
Those are some tips and ways on how to prepare for your retirement. You may ask assistance from the trusted estate planning lawyers of Van Tubergen, Treutler, & Hayes, PLLC. Our estate planning and elder law services include retirement planning. Call us at 616-844-3000. We provide legal assistance in Grand Haven, Muskegon, Holland, and Ottawa County in Michigan.


Sources:
Employee Benefits Security Administrator, United States Department of Labor. (2015). Top 10 ways to prepare for retirement [pdf]. Retrieved from https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/publications/top10ways.pdf