So you’re likely to be around a long time, and need a lot of money to carry you through retirement. Let’s focus on building a nest egg big enough to carry you through retirement, no matter how long it lasts.
1.Save what you can. There’s no magic formula for how much you should save. The only rule is save as much as you can for as long as you can.
2.Use all the retirement saving plans you can.There are many retirement saving options available,take full advantage of everything open to you, especially plans that let your retirement saving build up tax-sheltered.
3. Be a risk-smart investor. You can’t know what the economic future holds.Become comfortable taking reasonable investment risks so your retirement saving grow no matter what the economic future holds.Your investment success will make the difference between a secure and an iffy retirement.
4.Be an inflation-smart investor.Inflation at 3% a year doesn’t sound like much,but that is what our economy has experienced overr the long term.And retirement planning very definitely is for the long term.In 10 years, inflation at an average 3% a year can cut the purchasing power of your $30,000 a year pension by one-third.Invest to overcome that inflationary drain.
5.Make alternative plans.Don’t expect retirement income to match peak working earnings.43% of working 50-plus expect their post-retirement living standard to equal their living standard while working.Expect a retirement gap and start planning now to close it.