Prepping for retirement can seem complicated, with Social Security choices to make, investment strategies to approve, and long-term planning to facilitate. But there are five things you can do right now to help you be retirement-ready in the future.
- View Your Social Security Account. Do you know what your Social Security benefits will be in retirement? Visit ssa.gov and create a personal account. You’ll get immediate, real-time estimates of your monthly benefits. Plus, you’ll receive information about what you’ll get in retirement if you stop working early versus waiting until your full retirement age.
- Max Your Employer Matching Policy. Be sure you’re making the maximum contribution to your 401(k) or other retirement plan to receive your employer’s full match. If needed, adjust your contributions to meet that threshold. You don’t want to leave free money on the table.
- Increase All Retirement Contributions by 1%. If possible, increase the amount you contribute to all your retirement accounts by 1%. This small bump might not be noticeable to your take-home pay, but it could be great for your overall retirement funds years down the road.
- Audit Your Investment Fees. Look at all of your investments (mutual funds, index funds, and more), and estimate how much you’re paying in fees. This audit does not include your employer’s plan. If you’re paying more than you like, start shopping around or ask your investment advisors about your options.
- Define Your Ordinary Day of Retirement. What do you plan to do during retirement? Will you volunteer? Start a small business? Read all of the classics? Travel? Whatever it is, write down what your typical day will look like and how much it will cost you. This can help you plan ahead and budget for all of your expenses. If you plan to live frugally, you may be able to retire earlier than expected.