There is never a bad time to start thinking or saving for retirement, in fact, the earlier you do so, the better! However, when is the best time for you to sit down and structure your retirement plans?
Retirement can be a source of financial stress for many people as you will no longer have a fixed income source from your career. However, many retirees will have multiple sources of income from government retirement programs, benefits, tax treatments, insurance payouts, and more! This can make planning quite confusing, how much can you realistically expect and how much will that be given up to taxes?
So, when should you start to make a plan that gives a comprehensive estimate of all these different sources? Read on to find out more.
Retirement Planning at 45-59
This is the best time for you to start to plan for retirement. On average, starting around five to 15 years prior to your expected retirement age will produce the best results. This is because at this point you will have a better idea of what you will want from your retirement, as well as your savings, retirement spending, and calculated benefits.
In fact, at this point, your household is also probably transitioning into a new phase of finances as your children move out and you and your spouse start to appreciate a slower pace in life. On top of this, you have probably reached or are reaching your peak earning years. All these combined help you to better predict your earnings, savings, and projected retirement spending habits.
More importantly, starting this early will allow you to make any changes if your current resources do not match up with your needs!
Retirement Planning at 60 to 70
Considering that the average age that people retire in the United States is around 61, planning at 60 to 70 can be somewhat late. This is especially so if you are going to collect your full Social Security benefit around 67 and eligible for Medicare at 65. This means that there isn’t going to be much time for you to restructure your finances or savings plans if necessary. This will take away some flexibility, but it is still possible to prepare your retirement plan.
Planning for Senior Care
Something that can really impact your retirement planning is whether or not you will need or want senior care in the future. For many people, assisted living, memory care, or independent living will be the best option to enjoy worry-free senior living.
Here at Mariposa, we have created a senior living community that allows all our residents to enjoy resort-style living with stylist apartment homes and a wide range of amenities and exclusive senior living programs.
For more information on our housing options or senior living programs, contact us today by filling in this online form or at 561.332.4899.