Although it may seem to be many years away, people should begin planning and saving for their retirement while they are still young. In fact, people should be able to answer three questions about their retirement plans by the time they turn 40. At this age, people should be able to state what age they plan to retire, keeping in mind that most end up retiring earlier than anticipated due to their health or job loss. People should also consider their Social Security benefit. Your retirement age will determine your social security benefit. Finally, by age 40, people should be able to anticipate potential healthcare costs after retirement and ensure they have financial plans and options to meet this expense.
- By age 40, you should know at what age you plan to retire and have a plan in place to get you there.
- Social Security benefits are intended to replace approximately 40% of your total pre-retirement income.
- Understand that Medicare plans do not cover vision, dental, or long-term care benefits.
“You’ll likely need to have several hundred thousand, if not upward of a million dollars, saved for retirement, and saving that much isn’t something that can be achieved in just a few years.”