Retiring comfortably is a dream for Americans, but many people struggle to save enough for their golden years. It requires years of planning, disciplined financial management, and wise money decisions post-retirement. Unfortunately, non-retired Americans have pessimistic expectations for a secure and comfortable retirement right now. Only 43% think they will have enough funds to live comfortably.
According to a 2022 survey, the mean retirement age for Americans is 61, while the current life expectancy is nearly 76. It means you should have at least enough savings to last for 15 years and extra to cover emergencies such as a serious illness. Besides addressing your pressing needs, consider saving to fulfill your wants and luxuries to fulfill your dreams and goals over the years.
In this article, we will share a few proven tips to lead a retirement lifestyle you deserve.
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Set Realistic Financial Goals
The biggest long-term financial goal for most Americans is to retire rich, or at least, have enough to enjoy their golden years. You should have enough to pay the bills and cover your healthcare costs in the long run.
Besides the basics, you may have a few goals you desire, such as buying a luxury home, traveling overseas, or investing in jewelry you can bequeath to your loved ones. Be realistic about your expectations to ensure they do not burden your finances. You can also look for ways to maximize your savings without compromising your expectations.
Create a Comprehensive Budget
According to recent data, home expenses contribute to one-quarter of the increased spending in retirement for Americans. That means you may end up spending more on maintaining your home rather than fulfilling your dreams after retirement. A comprehensive budget can be your savior to achieve the retirement lifestyle you deserve.
Identify your fixed costs, such as housing, insurance, and utilities. Also, list discretionary spending on entertainment and travel and factor in emergency funds and potential healthcare costs. The overall view of your current and future expenses enables you to develop a budget aligning with your lifestyle goals. Remember to review and adjust it as your circumstances evolve.
Maximize Retirement Savings
Did you know that Americans think they must save at least $1.8 million for a comfortable retirement? That’s hardly close to $113,000, the average retirement fund for most households. However, achieving this feat is not as challenging as it sounds, provided you start early and set aside more when you are young.
Building a robust financial foundation with retirement savings accounts, such as 401(k)s and IRAs, is the key to unlocking the lifestyle you deserve during your golden years. Take advantage of employer-matching contributions and contribute consistently to consolidate your foundation. Diversify your investments to manage risk and explore additional investment opportunities to accumulate more wealth.
Pamper Yourself with a Leibish Herkimer Diamond
Retirement gifts are a custom in many countries, but you can go beyond expecting them from others. Why not pamper yourself with a precious present- a long holiday, a relaxing spa subscription, or even a piece of jewelry? These are the best ways to elevate your lifestyle.
Let us say you want to buy a retirement gift for yourself or your partner. Herkimer diamonds are great for retirees as they do not pinch the wallet, yet are a cherished gift or wise investment.
These striking natural gemstones are available in various budgets, with small ones costing as little as $30 to $50. Expect to shell out $1,600 or more on bigger ones, but they are still far less expensive than diamonds. The best part is that they do not fall short when it comes to beauty or sparkle.
Plan for Income Streams
You may get a pension or Social Security as a retiree, but relying solely on it will not take you anywhere close to the retirement lifestyle you desire. With 57% of Americans expecting to work in retirement, there is a possibility that they haven’t saved enough. Conversely, you may want to do it intentionally for a better lifestyle.
Planning for multiple income streams can help you achieve a dream retirement. For example, you can consider working part-time or using your skills and experience for freelance projects. If you are smart enough, you can create passive income sources such as rental properties and dividends from investments. Extra income offers financial stability and flexibility during your retirement years.
In conclusion, retirement planning is vital to embrace the lifestyle you deserve in the long run. However, you cannot take a set-and-forget approach because your needs, economic influences, and retirement planning strategies evolve. Being well-informed and proactive enables you to make wise financial decisions and adapt your approach according to current circumstances. With this mindset, you can ensure a secure, stress-free, and comfortable lifestyle.