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Building Your Retirement Nest Egg

We all want to enjoy our retirement. Pursue the hobbies we never had enough time for while we were working. Take a vacation to the places we always wanted to visit. Spend more time with the grandkids. This is how we envision our golden years.

But saving for retirement is not always easy. You have a mortgage, car payment, college tuition. It doesn’t always leave you enough to build that nest egg. How are you preparing?

Planning for retirement

Depending on what stage you are at, there are different ways to put together a realistic retirement plan. The average age to retire in the United States is 63 as of 2017.

Most financial advisors will tell you that you should put aside 10-15 percent of your income starting in your 20s if you want to retire comfortably. Of course, living comfortably means different things to different people, so the first thing you should start thinking about is what retirement looks like to you.

Do you plan to explore your hobbies or travel? Do you want to move to someplace warm year round? Or, do you expect to stay close to home to enjoy your golden years? All of these factors influence how much money you should save down the road.

Consider your longterm healthcare needs. What Medicare benefits will you qualify for? Do you have an individual health insurance policy lined up?

Fine tuning your plans

If you are less than five years away from being eligible to retire, it’s time to fine-tune your plans and project your retirement income. Check into the health of your investments and start making a budget.

Consider your pension plan options and learn what government benefits you are eligible to earn. Check out www.ssa.gov to understand when you are eligible for full benefits. The earliest you can begin collecting Social Security is at age 62, with reduced benefits.

The state has a great resource for retirement planning at: www.retirementplanning.net, offering specific New Hampshire-centric retirement plans, helpful articles, a retirement plan calculator and contact information for financial advisors near you. AARP (www.aarp.org) is another good resource.

Retirement is a lifelong process and you can never begin planning too early or save too much! Remember, you get to decide how you spend this time in your life.

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