Experts say that you should start planning for your retirement in your early 20s, but that rarely happens for most people. Instead, the average person waits until their mid-30s or early 40s to start saving up. According to HuffPo, the majority of Americans are simply unprepared for retirement. Reasonably so, too, as life can be filled with unforeseeable expenses. If you want to retire early, use these helpful retirement tips from to get a head start.
Setting Aside the Proper Amount of Funds
One of the most common questions about retirement involves: how much so I set aside? According to the experts, this answer is straightforward. About 10% of all income per month if you are in your 20's; about 15% if you are in your 30s; and about 20% if you are in your 40s.
Preparing for Increased Healthcare Costs
Make sure you are prepared for rising healthcare costs. Medicare and Medicaid require more substantial contributions due to new healthcare laws. You'll need, on average, $50,000 set aside just to cover your future medical expenses. So be sure that you plan for that.
Downsizing Your Housing
Living on a fixed income will be your primary goal. This will usually require that you downsize your home and living space to reclaim equity and reduce monthly cost. Look to explore your options with a smaller home or apartment when your retirement day does arrive.
If you are pensioned and receiving Social Security, there will be some tax implications. Be sure you have a good accountant lined up who can help you answer any important questions when this time comes around. By planning well in advance, you can enjoy a high quality of living when you retire. But it's all in the foresight.
Treat Retirement Savings Like A Bill
In order to really meet your retirement goals, make sure you start viewing the nest egg that you are saving as a bill, just like any other. Consider opening a separate savings account that is not attached to any other accounts that you have. Write a check each month for the same amount, and treat that like any other bill that you have. If you are late, add a late payment fee. Once you become accustomed to this method, you'll realize just how quickly you are saving up a healthy nest egg for the future.