It’s never too early to start thinking about your retirement plan if you’re over the age of 40. At that age, you may not feel like you’ll ever be able to escape work, but it will happen sooner than you expect. Remember how it felt like you’d never be able to leave school? What happened to all the time? This article will go through six important factors to remember while preparing for retirement. Our website provides info on Honolulu Retirement Planners
Factor #1: A Retirement Planner Age at this time
The first thing you can think about is your age. You must have a starting point from which to construct your retirement strategy. Starting a strong retirement plan at least five to seven years before you expect to retire is a smart idea.
Factor #2 in the Retirement Planner: Desired Retirement Age
Your ideal retirement age will be a factor in your retirement planner. This is usually between the ages of 55 and 65. In the United States, the average retirement age is 62 years old.
Factor #3: Life Expectancy in Retirement Planning
This is the most difficult aspect of a financial planner to account for, so when putting together a retirement plan, keep in mind that the average life expectancy for a man is 85, and the average life expectancy for a woman is also 85.
Factor #4 in the Retirement Planner is Current Income.
Now you have to find out how much money you have right now. Not what you want it to be, so how much money do you and your spouse make on a yearly basis? Make sure you’re just counting money that you know will continue up to and probably beyond the point at which you retire.
Factor #5 Typical Annual Raise in Retirement Planning
How much do you think your salary will rise until you hit retirement age? Again, calculating this is complicated, but the national average indicates that most people increase their annual income by three to four percent per year.
Factor #6 in Retirement Planning When you retire, you want to get a certain amount of money per year.
The best part of the retirement planner is this section. When you retire, how much do you want to earn? You should start dreaming about how you want to spend your retirement years. Will you go on a trip? Which mode of transportation can you use? All of these considerations are crucial when creating a retirement plan for you and your spouse.