The good news is it is never too late, or too early, to begin retirement planning.

What can I expect from Social Security?

The average social security payment is $1,063.90 per month. You can calculate your estimated benefit with an online calculator, or order a statement in the mail from the Social Security Administration.

Experts suggest you should prepare to have 70 to 90 percent of your pre-retirement income to maintain your current standard of living. Consider additional health care costs, especially if you choose to retire before you qualify for Medicare at age 65. A financial advisor could help you determine what you’ll need to save to supplement your Social Security, based on your estimated expenses. There are many options available to those seeking to supplement their social security income.

Take advantage of your company’s 401(k) plans: Your 401(k) gives you access to an immediate tax break because contributions are taken out of your paycheck prior to taxes, thereby lowering your taxable income. The growth is also tax deferred, so you don’t pay taxes each year on the increasing funds. In addition to those benefits, some employers match funds, often 50 cents on the dollar for the first 6 percent that you save.

Consider an IRA: Whether your company has a 401(k) plan or not, an IRA (Individual Retirement Arrangement) is an excellent way to compliment your retirement savings. There are two types of IRAs: traditional and Roth. A traditional IRA offers tax-deferred growth, meaning your contributions are tax deductible, and you pay taxes only on your withdrawals in retirement. A Roth IRA doesn’t allow for pre-tax contributions; however, you owe no taxes on your money when you make withdrawals in retirement.

Consider less traditional opportunities to grow or supplement your retirement investments: Taking a part time job during retirement will allow you to withdraw less from your IRA, thereby giving your money more time to grow. A reverse mortgage may be an option if you are 62 years or older, allowing you to convert the equity you have built in your home into tax-free retirement income. You may also want to consider your location. Moving to a less expensive area, or home, could help you stretch the retirement income you already have.

Retirement planning is best done with an experienced guide; consult with your financial advisor to determine the best path to a successful retirement for you.

At this point, it is imperative that you are informed about the basics of retirement planning and the processes that are involved in coming up with a workable plan at the very least.  You need this information in order to do your own introspection into what you wish to plan for and how you envision your retirement to be.  There are a lot of variables to consider.  You can actually dream all you can about the grandest retirement you could ever want.  But, being realistic about your retirement goals is the only way to go.  Think about what you want to do after your retirement.  Do you want to go on a world cruise with your spouse?  Would you want to put up your own family restaurant down the block?  Would you want to just be able to spend your mornings golfing and the rest of your day tinkering around the house?  Once you determine what you want to happen after your retirement, you can go on further to focus your efforts at coming up with all that are necessary to help you achieve this retirement goal.  The financial aspect of your preparation is one of the most crucial parts of your retirement plan.

With the help of a retirement planning consultant from a retirement planning center, or on your own if you are confident about your finance acumen, you can draw up a financial plan in order to make your retirement goal possible.  This would involve quite a bit of pencil-pushing for you.  You have to determine how much it would take for you to be able to sustain the lifestyle that you want years from now.  A good way to start would be to find out how much you would need if you were to retire today and continue living the lifestyle that you desire for the rest of your life.  Given this approximate figure, you can then use the inflationary factor to project the amount of money you would need in the number of years from today until your target retirement date.  This is the figure that you should be able to accumulate from now until you retire.

The next thing to do is to find an investment instrument that will let you successfully accumulate your retirement income goal.  Another factor that comes to play at this point is your present income and the amount that you have in disposable funds.  Offhand, if you do not have the financial discipline to put aside a certain amount of money from your income on a regular basis, you are not likely to be successful in your retirement planning.  Remember that the more you save now, the more you give your money a chance to grow for your future needs.  You can still live the life that you want today without sacrificing all your present pleasures.  Cutting back a little on the extras could help you make sure that you are able to enjoy future pleasures as well.  It would not hurt to find out exactly how you could do this from a retirement planning center.