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Preparing for Retirement in the Next Ten Years

Updated on October 4, 2015
DeborahDian profile image

Deborah is the author of of Baby-Boomer-Retirement. com and often writes about retirement and topics of interest to Baby Boomers.

Want to Have a Relaxing Retirement? You Need to Start Planning!

It is never too early, or too late, to start planning your retirement.  The sooner you start, however, the better off you will be!
It is never too early, or too late, to start planning your retirement. The sooner you start, however, the better off you will be! | Source

Retirement Planning Will Improve Your Future Lifestyle

If you are looking for information about retirement planning, this article contains many of the facts you will need as well as a variety of helpful resources to help you. Whether you plan to retire in a few weeks or a few years, preparation is key. As the author of the Baby Boomer Retirement blog, i have researched dozens of retirement locations and written about numerous aspects of retirement planning. Regardless of your current financial situation, there are certain steps everyone needs to take in order to get the most out of the money they will have available when they retire.

Currently, approximately 10,000 people every day are turning 65, according to estimates by the Social Security Administration. However, many of these people are not able to retire because they have not done a good job of preparing for this day. On the other hand, with a little careful planning, future retirees can avoid this problem. Even if you have very little savings, there are still ways that you can maximize your retirement income.

Unfortunately, research is also showing that many Baby Boomers are finding it necessary to retire sooner than they expected and, consequently, their lifestyle has to be severely curtailed. Sometimes this happens for health reasons; in other cases they lose their job in their late 50's or early 60's and have difficulty finding another one that pays as well.

This article will take you step-by-step through some of the most important issues you will need to consider as you prepare for retirement. In addition, this article recommends sources of more in-depth resource information, such as the blog, www.Baby-Boomer-Retirement.com, and several books that will be useful as you get closer to retirement.

How to Begin Your Retirement Planning

First, start with a budget. Total up your current living expenses. Then total up the expenses you will have after you quit working. Many of your expenses will be lower. For example, you will probably spend less on gasoline if you are no longer commuting, you may buy fewer restaurant meals and, if you are over 65 and eligible for Medicare, your medical insurance payments will be lower. You may also have certain bills that you plan to pay off before you retire such as your car payment, credit card bills, or your mortgage.

Next, you need to estimate what you will have in income after retirement. Social Security sends out statements once a year that will give you an estimated income. Hopefully you will also have some income from other sources, such as a pension or investment income.

Finally, subtract your estimated retirement expenses from your estimated retirement income. If you have a surplus, you are off to a great start for your retirement years. If you have a deficit, you are like the majority of Americans and you will need to make some changes. Keep reading, because you will find some practical ideas that will help with your retirement planning.

AARP will Help with Your Retirement Planning

You are going to want to stay as informed as possible as you prepare for retirement. The first thing you should do is join AARP. This organization pays for itself because you can use your card to get discounts at many hotels and tourist attractions. In addition, you will get the AARP Magazine and the AARP Bulletin which will provide you with useful information about changes in laws, medical research and financial planning. No one want to be surprised when they hit retirement and they discover there are rules and issues they had not known about. AARP does an excellent job of keeping its members informed.

You may also wish to attend retirement seminars in your local area. However, be aware that most of them are set up by investment advisers who will want to sell you annuities, mutual funds or other products. Garner all the information you can from a variety of sources before committing your money.

The books featured in this article will also help you. If you want to see the prices or get more information about any of the books featured in this article, simply click on the blue product name for that book and it will take you to Amazon where you can learn more, read a sample, or shop for other books.

AARP is Devoted to Helping People Prepare for Retirement

The AARP® Retirement Survival Guide: How to Make Smart Financial Decisions in Good Times and Bad
The AARP® Retirement Survival Guide: How to Make Smart Financial Decisions in Good Times and Bad

This book is from the American Association of Retired People. It gives practical advice to help you retire, too!

 

How to Increase Your Retirement Income

Most Americans are reaching their 60's and discovering that they are not financially prepared for retirement. There are several steps they can take to increase their income.

1. Postpone retirement as long as possible. If you wait to collect your Social Security when you are 70 rather than when you are 62, you will substantially increase the amount of Social Security benefits you will receive.

2. Start a second career. This is the time when you can do that fun job you always wanted to do, or find a part-time job. I have known former stockbrokers who went to work in healthfood stores, Realtors who began creating and selling their artwork,and housewives who went to work in art galleries. This is the time to do something fun that will also help you earn at least a few hundred dollars a month more. For many people, this can make the different between a very frugal retirement and one that is much more exciting.

3. Begin carefully drawing down your IRA and 401K savings ... but you have to plan! In this time of low interest rates and dividends, do not withdraw more than 3% of your principal if you want your money to last the rest of your life. Use less than 3%, if you can because you may need more later in life.

Retirement Planning Books

Read up on retirement planning. Below is another retirement planning book that is especially popular on Amazon. Whether you buy one of the books featured here or select other ones, everyone should get a few books on Social Security, retirement and investing before they retire.

The important thing to remember as you prepare for retirement is that you need to have a plan and stick to it. You will never reach your goals if they are not clearly defined in your mind.

If you want to see the prices or get more information about any of the books featured in this article, simply click on the blue product name for that book and it will take you to Amazon where you can learn more, read a sample, or shop for other books.

Even Single People Need to do Their Retirement Planning!

The Single Woman's Guide to Retirement
The Single Woman's Guide to Retirement

Single women have specific issues regarding retirement that need to be addressed if they hope to have a comfortable retirement.

This is especially important, because single women are the the ones most likely to be living in poverty in their later years.

 

How to Save Money on Living Expenses After Retirement

Another area you need to consider is where you are going to live after retirement. Affordable housing is the most important aspect of saving money, especially if you know you will have a large shortfall after retirement.

Large numbers of retirees have moved to affordable over-55 communities and there are many that contain relatively inexpensive homes and apartments. They also provide plenty of amenities so that retirees can have an active retirement, even if they are living on a tight budget.

The most popular articles on the Baby Boomer retirement blog have been the ones that cover cheap places to retire, both in the United States and overseas. Among the states that are considered especially affordable are Florida and Texas. However, there are affordable retirement communities located throughout the United States.

Many of the figures for this article came from the blog: www.baby-boomer-retirement.com

Share your retirement planning tips with us here:

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    • DeborahDian profile image
      Author

      Deborah Carr 2 years ago from Orange County, California

      Everyone needs to start planning for retirement, no matter how young they are. It is never too soon! The information in this article will get them started.

    • Lee Hansen profile image

      Lee Hansen 4 years ago from Vermont

      My mother the accountant hammered at me starting in my 30s to plan for retirement. I did, and despite losing 150K in home equity in the late 80s and 25K in the market crash, I'm still working on the plan and think I will be OK. Not ready to retire yet and enjoying my 3rd career, but I could flip that switch any day now and be comfortable in my golden years. Planning is key, even earlier than 10 years prior to retirement.

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @Mr Criminology: More and more I believe that people are going to need additional income beyond Social Security or a basic pension if they want to be able to stop working full-time someday. I encourage people to face this reality when I write my Baby-Boomer-Retirement.blogspot.com blog. My goal has always been to help people have the most comfortable, healthy retirement possible.

    • Mr Criminology profile image

      Bigwas 4 years ago from Philippines

      great lens there, I my self would not want to live on my pension alone when I retire, I want to have other sources of income. Early planning is the key indeed.

    • blestman lm profile image

      blestman lm 4 years ago

      Thanks for the great lens. I am starting an internet business that will provide for me in retirement.

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @Digory LM: Thank you! My husband and I are down to being within three years of retirement, and I know how important it is to plan wisely.

    • Digory LM profile image

      Digory LM 4 years ago

      Very helpful lens. Thanks. I am getting close to that ten years from retirement place in my life.

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @EsotericAllusion: Thank you for your comments. I think that planning for retirement is one of the best things we can do for ourselves and for our children ... who, hopefully, will not have to support us in our old age!

    • EsotericAllusion profile image

      EsotericAllusion 4 years ago

      Some really good and practical information here. The book choices are also excellent.

    • Magda2012 profile image

      Magda2012 4 years ago

      Useful information about retirement. It is always good to have a long term plan.

    • marynjohnson profile image

      marynjohnson 4 years ago

      Nice plan. I learned some new ideas on this lens.

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @GardenerDon: Moving in with adult children is actually becoming more common. The number of retirees who are living with their kids has increased dramatically over the past 10 years. I have even written a blog post about things to consider when you live with your kids!

    • CoolFool83 profile image

      CoolFool83 4 years ago

      It's always smart to have a good retirement plan.

    • GardenerDon profile image

      Gardener Don 4 years ago

      Live at the kids place - they spent enough time at mine!

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @CoolFool83: Planning for retirement is so important, I've written a whole blog on Baby Boomer Retirement! But you don't have to be a Baby Boomer. You are never too young to prepare for retirement.

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @Jo-Jackson: Being debt free when you retire is an excellent idea! When people do that, they are more likely to be comfortable in retirement.

    • Jo-Jackson profile image

      Jo-Jackson 4 years ago

      My major plan is to try to be debt free by the time I retire.

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @LornsA178: I am so glad you found this lens helpful. I hope you begin to start to plan for your retirement. You are never too young!

    • DeborahDian profile image
      Author

      Deborah Carr 4 years ago from Orange County, California

      @WriterJanis2: Thank you! I have written a blog on the topic for a while, and I thought I would reach out to people who have not seen my blog, yet. Retirement is something people really need to plan for!

    • LornsA178 profile image

      LornsA178 4 years ago

      I don't have retirement plans yet, but I learned a lot from this lens. Thanks!

    • WriterJanis2 profile image

      WriterJanis2 4 years ago

      You are offering some very good advice here.