When most of us think about planning for retirement, we’re focused on just enjoying our golden years. However, there are actually several phases that go into successful retirement planning.  

This guide takes a look at each of the different phases of retirement planning. Plus, we’ll break down what steps to take at each phase of retirement.  

Stage 1: Pre-Retirement 

 
Pre-retirement usually starts somewhere between the ages of 50 and 62, and refers to the decade before you actually retire. During the pre-retirement phase, you’ll be honing in on how much income you’ll actually need to have during retirement.  For the smaller group of forward thinking people in their 30s and 40s who are actively saving and thinking about retirement, that extra effort and time (in terms of all those additional years of tax deferred or tax free compounding) will really come home to them by the time most other people are just starting to get serious ( early 60s).  

This phase is particularly important because most people don’t start to think about retirement planning until it’s too late. During the pre-retirement phase, however, you have an opportunity to look at your finances and really get a feel for what your golden years will look like.  

This is also the time to check what balances you have in your retirement plans, such as a Roth IRA or a 401(k). You’ll also want to check out any other investments that you currently have to see how they’re performing and what types of ROI they’re offering.  

Additionally, you’ll want to use this time to get a feel for the lifetime retirement benefits offered by your local, state, and federal governments. Remember, 62 is the earliest that most people are able to start withdrawing Social Security benefits. Or, you could choose to increase your retirement savings by waiting to withdraw on your Social Security payments.  Each year from age 62 to age 70 that you wait to start your Social Security benefits, they grow by 8%. Since we cannot earn a guaranteed 8% anywhere else at this time, this makes a strong case for people to consider delaying their Social Security benefits for at least a few years from age 62. 

Lastly, during your pre-retirement phase, you’ll need to create a budget and a savings plan to help ensure you can live comfortably during retirement. Try to pay off any debt you have in order to free up even more income during your golden years. Additionally, you need to factor in some assumptions about how much higher the cost of living will be upon your retirement (“inflation”).  

Stage 2: Early Retirement 

 
After the pre-retirement phase is the early retirement phase. Most people enter this phase when they’re between the ages of 62 and 70. This phase is sometimes called the honeymoon phase, and it refers to the first couple of years you’ll enjoy as a retiree.  

During the early retirement phase, you’ll be adjusting to your new lifestyle. As a result, it’s not uncommon for retirees to overspend during these first few years as they get used to their new spending habits and extra free time.  

The early retirement stage is also when many people are eligible to receive full Social Security benefits, as well as some possible state benefits. Additionally, some people choose to get a part-time or full-time job to help support their lifestyle or to stay occupied. 

Some individuals may also need to adjust their healthcare plans during this phase of retirement. In most cases, this will mean a transition to Medicare and a Medicare Supplemental policy from the prior coverage. Making sure to check what your coverage terms are and how they work will help to ensure you don’t have any breaks in your healthcare coverage.  This is also the latest you should be addressing and planning for potential long term care, or chronic illness costs that can enter the picture toward the end of your life. 

Stage 3: Mid-Retirement 
 

Mid-retirement usually takes place between the ages of 70 and 80. During this phase of retirement, most people are starting to settle into their new lifestyle. Additionally, many retirees spend less money during this phase due to being more settled, downsizing, potentially traveling less, or no longer supporting dependents.  

At the same time, this is when budgeting for inflation is critical. Many retirees forget to budget for inflation, and as costs go up one year to the next, they find that they can’t keep up. Proper budgeting and income planning from a professional can help you avoid this scenario and truly relax during your mid-retirement years.  

During the mid-retirement phase, it’s also time to check out your legacy plan and your estate planning documents. You may want to assign a close friend or family member a durable financial and health care power of attorney in the event that you’re not able to execute your wishes in your final days. Undertaking these types of decisions will help to make your retirement easier, and give you peace of mind.  

Stage 4: Late Retirement 
 

Stage four is the late retirement phase, and is the last part of your years as a retiree. During this time, many individuals need to plan for long-term health care support, such as moving into an assisted living home or hiring someone to help you in the house.  

This is also the time to look into what death benefits your family will need and what steps need to be taken on your end to ensure payouts, and an efficient transfer of both wealth and important values.  

Finally, many retirees experience increased costs during the final phase of retirement. This is largely because of increased expenditures due to healthcare costs. Ensuring that you have a cushion for these types of expenses during the last stage of retirement is key. If prior planning had not been done on this front, there is a very real chance that a healthy spouse could accidently be impoverished, or loved ones accidently disinherited. Additionally, if there is a prolonged physical or cognitive condition, you could run out of money altogether. 

Final Thoughts 
 

The stages of retirement aren’t a hard-and-fast rule for how to plan for retirement. However, they can certainly make it easier for you to settle into your golden years without any unexpected expenses.  

Try organizing your retirement years around these phases of retirement planning in order to be fully prepared for your golden years. And remember—the sooner you start planning, the easier it will be for you to settle down and enjoy your retirement.

Many people know that investing in cryptocurrency can be a way to build wealth and start increasing their potential future income. However, not as many people think about the benefits of investing in cryptocurrency in order to save for retirement.  

This guide goes over different ways that individuals can invest in cryptocurrencies in order to save for retirement. It also discusses the benefits of doing so and why it can be a great way to bolster your retirement savings.  

How Building Retirement Portfolios With Crypto Works 

If you want to get started building a retirement account using crypto investments and digital assets, the first step is to find an IRA custodian who will allow you to purchase these investments.  Please note that these custodians that allow the purchase and sale of cryptos will usually charge some annual fees that a custodian who only holds stocks bonds and mutual funds will not. 

IRAs That Allow Crypto Purchases 

Although it sounds easy enough to add crypto to your retirement portfolio, not all IRAs actually allow you to do so. As a result, you’ll need to make sure that you find one that does if you plan to use crypto investing as part of your retirement strategy.  

These types of IRAs are actually just self-directed IRAs, which means that you are in charge of what enters and exits your account. A couple of the more popular crypto IRAs out there include:  

• Bitcoin IRA 
• CoinIRA 
• BitIRA 

Remember, when choosing a cryptocurrency IRA you need to make sure to check reviews and research sites like Trustpilot. With the rising popularity of crypto purchases, a number of scammers have begun setting up fraudulent self-directed IRAs, which can leave retirees penniless.  

Doing your due diligence can help you to avoid these types of scams and select an IRA that can offer a potentially strong return on your investment.  

Purchasing Cryptocurrency for Your IRA 

 
Once you’ve selected which IRA you’ll use to make crypto investments, it’s time to actually add those investments into your account.  

The easiest way to do so is to use , checks, direct deposits, or transfers from another IRA to invest in your account. Remember, there are annual limits which, for 2023, is $6,500 ($7,500 if you’re over 50). 

Additionally, if you have a plan through an employer, you may be able to do an “in service distribution” and roll out some funds to an IRA, and can then start adding crypto , which lets you enjoy a tax-deferred status on any funds currently in your account. Or, you can simply move all of your funds into an IRA that allows crypto purchases, if you leave the job and are eligible to rollover the funds in the company plan.  

Once you’ve moved your cash into a crypto-compatible IRA account, you can start using the funds within your retirement account to trade for cryptocurrencies. Just remember that you’ll still have to pay fees for transactions as well as for your IRA, which can quickly add up.  

Benefits of Purchasing Cryptocurrency for Retirement 
 

There are a couple of potential benefits of purchasing crypto for retirement. For one thing, cryptocurrency has the ability to rise dramatically in the coming years. Bitcoin, Litecoin, Ethereum and others have seen enormous success over the past several years, despite the more recent weakness seen in the past 12-15 months or so.  

While cryptocurrencies must still be considered speculative, or “aggressive growth” holdings for most people, these types of investments can offer high returns that could help bolster your future retirement income.   

Also, cryptocurrency purchased and held in IRAs can provide the typical tax benefits that IRAs offer with more traditional investments. Some retirees may be able to lower their tax liability by avoiding capital gains taxes on these types of investments for many many years.  

Despite the benefits of purchasing crypto for your retirement account, you should be aware of the risks.  

A few of the most common risks include:  

• Insurance: The FDIC does not insure cryptocurrency in the event that something goes awry. 
• Market: The crypto market is highly volatile and experiences regular fluctuations that can lead to great financial losses. 

• Fraud: There may be a fraudulent crypto exchange, so retirees need to be cautious when looking for crypto IRAs.  

Final Thoughts 
 

Cryptocurrency is one of many investments that individuals can use in order to save for retirement. At this stage, it should only be a small percentage of anyone’s retirement portfolios, due to its risk levels, but of course along with those higher risk levels comes the opportunity for abnormally large gains. Just remember that purchasing cryptocurrency through a retirement plan must be done under specific conditions and is only allowed with specific types of retirement accounts.  

Additionally, it’s important to weigh the tax benefits and potential returns against risks of fraud and fluctuating market conditions. That way, you can determine whether this is a smart investment choice that makes sense for you.  

Once a radical idea, the thought of investing in cryptocurrency has taken off in recent years. In fact, research suggests that around 21% of American adults have invested in or purchased cryptocurrency at some point.  

Although Bitcoin is by far the most well-known and popular cryptocurrency, there are actually a number of different digital coins on the market. A few other big names include Ethereum and Litecoin.  

With that said, new cryptocurrencies are emerging on the market all the time, and in 2023, there are already some new cryptocurrencies that investors should be aware of. Here are a few of the newest cryptocurrencies and what to know about them.  

FightOut ($FGHT) 
 

FightOut is a cryptocurrency that’s designed to get people moving and help support fitness and exercise. This cryptocurrency is closely tied to a fitness application and teams up with gyms using special sensors.  

The idea is that users who invest in the cryptocurrency receive additional rewards from working out. For instance, investors who use the app can receive something called REPS, which they can exchange for items such as workout gear and supplements.  

Early investors can get good discounts on these coins, as well, by making investments before the coin potentially takes off.  

 
Meta Masters Guild (MEMAG) 
 

Meta Masters Guild, called MEMAG for short, is thought to be one of the hottest cryptocurrencies hitting the market in 2023. To put it simply, this cryptocurrency works on a play-to-earn community where individuals play certain games and are rewarded with MEMAG coins.  

MEMAG has a number of games on the platform, all of which are available on both Android and iOS smartphone devices, making it easy for investors to earn money on the go. Alternatively, investors are able to stake their investments in order to receive passive income, rather than having to actively participate in any games.  

Finally, one key feature of this cryptocurrency is that the gaming guild platform allows indie designers to create their own games to add to the space. The idea is that this will create a supply of games that doesn’t diminish quickly, enabling more individuals invest in the coin.  

C+ Charge (CHCG) 
 

CHCG is a cryptocurrency that’s designed for individuals who drive electric vehicles, often called EVs for short.  

This project’s main goal is to help encourage individuals to reduce their carbon impact by switching from gasoline-powered vehicles to more environmentally friendly electric vehicles. CHCG will help encourage this by using blockchain technology to distribute carbon credits to EV drivers.  

As part of this initiative, C+Charge will create several charging stations for EVs. Then, when an EV owner uses the C+Charge app to charge their electric vehicle at one of the crypto’s partner stations, they’ll be rewarded in tokens which can lead to carbon credits.  

Metropoly (METRO) 
 

Another cryptocurrency that is launching in 2023 and which is likely to be very popular is Metropoly. METRO, as this coin is called, is a cryptocurrency which allows individuals to invest in investment properties without having to go through banks or be subject to hidden fees.  

Additionally, METRO allows investors to make purchases of income-generating properties without any geographical limits. The idea with these tokens is that investors are able to make smaller-scale investments into these types of properties without having to commit large chunks of capital. For example, investors are able to invest as little as $100 into METRO. 

The blockchain used for this particular cryptocurrency is Ethereum, and there is currently a beta marketplace that has already launched for the coin. The developers launched the marketplace ahead of releasing the actual tokens themselves to help kickstart the cryptocurrency’s success.  

Dash 2 Trade (D2T) 
 

Dash 2 Trade, more commonly referred to as D2T, is a new cryptocurrency that’s been launched to help improve the trading network. It’s had a hugely successful pre-sale of more than $15 million.  

This platform has a series of signals that alerts users when they should buy, sell, or maintain their current assets. The idea is to help crypto investors avoid scams and become more efficient at trading. D2T also plans to track popular social media channels, such as Twitter and Reddit, to help make predictions more accurate for users.  

The platform also plans to have a strategy building API that enables users to create strategies and come up with potential trading plans to help maximize their earnings.  

D2T is set to have three tiers to it—free, starter, and premium. The features will increase with the amount paid for access to the platform.  

The Bottom Line 
 

There are some exciting new cryptocurrencies launching in 2023, with benefits ranging from new ways to invest in real estate to carbon credits for EV drivers.  

As the political, economic, and environmental landscape shifts, so too do the types of cryptocurrencies launched. Each new cryptocurrency has different advantages in today’s landscape and could make for some interesting investments.  

Consider investing in one of these new cryptocurrencies this year, and see where 2023 and beyond takes your investments.  

NFTs and Cryptocurrencies are two popular investment categories that have been in the news increasingly in recent years. In many cases, you’ll hear these terms used interchangeably. However, they are two unique types of investments. Both asset classes have their own particularities and characteristics that are suitable for different investment goals.  

This guide breaks down a few of the key differences between cryptocurrency and NFTs. It also goes in-depth as to what each one is, so that you can decide which is the right investment choice for you. 

What Is an NFT? 

NFT stands for Non-Fungible Token. These are digital tokens that cannot be divided, copied, or substituted. NFTs are unique identifiers, which means that they mark a single item that cannot be replicated or used interchangeably with another. To give you an example, an NFT would be like an original Van Gogh painting. You can’t copy, divide, or substitute a Van Gogh painting because it doesn’t have the same value as the painting made by Van Gogh himself.  

NFT technology creates a digital trail and verifies transactions such as purchases and sales. It also contains certain information about the current owner of the NFT, such as the date of the most recent transaction and the NFT’s current location. NFTs are commonly used in blockchain technology. NFTs can be used to ensure that the product you are purchasing is authentic. Since the blockchain can permanently store information about the product, checking for authenticity will soon be a requirement on countless physical products too. NFTs can also be used to store information about the manufacturing process, ensuring that everything is up to code and ensuring fair trade. 

NFT applications don’t stop at consumer products either. There have already been numerous companies successfully using NFTs for industrial design prototyping purposes. 

One problem in the world right now is fake food products like supplements and certain medicines.  NFTs can help solve this by tracking and tracing food products through their entire journey – from manufacturing to shipment. 

In many cases, NFTs are used with cryptocurrencies, such as bitcoin, to show ownership and make transactions transparent. 

What Is a Cryptocurrency? 

Cryptocurrencies are thought of as digital or alternative currencies, but they are actually digital assets that utilize distributed ledger technology, a.k.a. blockchain, to make digital transactions secure. They use cryptographic means to maintain the security of transactions and oversee the creation of new units of currency. Currently, there are several different cryptocurrencies available on the market:  

Bitcoin 

Dogecoin 

Ethereum 

Ripple  

Litecoin 

XRP   

Of course, you can exchange your crypto for cash and vice versa, using them to make purchases online. However, they change their value frequently, which can make these transactions complex. Like NFTs, there is no need for an intermediary bank account. 

What’s the Difference? 

Now that you know what NFTs and cryptocurrencies are, let’s go over a few of the key differences between them. Here’s a quick breakdown of some of the major differences between these digital assets.  

Cryptocurrencies Are Fungible 

As mentioned above, each NFT is valued independently, so it is not possible to exchange one for another. This is because each asset has a unique identification code and metadata that accompanies and distinguishes it. Cryptocurrencies, on the other hand, are traded and exchanged at the request of individuals in a manner similar to fiat currency. As a result, cryptocurrencies are fungible and NFTs aren’t. 

Cryptocurrencies Are Divisible 

Another key difference between cryptocurrencies and NFTs is that NFTs are not divisible. In other words, it’s impossible to divide an NFT into smaller parts or values. That’s because they’re considered a complete asset or token.  On the other hand, cryptocurrencies can be divided. Just as a dollar can be divided into cents, cryptocurrencies can be divided as well.  

To make the comparison even simpler, think of an NFT like a Picasso painting. If you split it in half, it wouldn’t be worth anything. On the other hand, cryptocurrency is more like $100. You could exchange that for two $50 bills or put $50 in each of two accounts. 

NFT’s Have Inherent Value 

Like works of art in museums, NFTs can be worth millions because of their inherent artistic value, history, cultural importance, or the creator’s fame. These are items that might be worth nothing now, but which could be worth very substantial sums in the future.  

It’s even expected that in the future, NFTs will be used in the global market as a replacement for identity documents, property titles, etc.. In the gaming world, they have the potential to improve marketing sources, monetary incentives, and rights management through tokens. On the other hand, cryptocurrency follows a much more linear valuation system. A crypto’s value goes up or down much as money’s does, as opposed to how a fine work of art would.  

Final Thoughts 

Although they’re sometimes confused with one another, NFTs and cryptocurrencies are not the same. Both can be valuable investments. Once you have learned to differentiate between them, you’ll find it easier to manage, invest, sell, and buy them in ways that meet your goals. Both cryptos and NFTs offer investors potentially explosive upside potential, but also carry higher than normal volatility.  They generally should only be considered for a small part of your aggressive growth or speculative portfolio. 

Many retirees, unfortunately, are ill-prepared to actually retire. In fact, about 37% of retirees in 2022 said that they didn’t have enough money to enjoy their golden years.

There are several reasons why this might happen, which include not starting to save early enough or not putting away enough cash each year. Regardless of the reasons why this happens, it doesn’t have to be the case for retirees.

This guide covers several ways to save for retirement and avoid becoming part of that 37%. Here’s what to know about saving for retirement and putting aside enough cash to be able to truly enjoy your hard-earned golden years.

1. Take Advantage of Employer Match Plans

Many employer retirement plans offer matching contributions. What it means is that for every dollar you save in your plan, your employer partially or fully matches your contribution.

Although most of these matching plans are capped at a certain amount, the caps are often quite high. A typical employer match amount is 3% of an employee’s salary, but is often as high as 6%, which can work out to thousands per year in “free money”.

Unfortunately, many employees don’t take full advantage of these plans. Instead, they add a small amount to their retirement savings, not thinking about how much additional income they could earn by meeting their employer’s match savings.

Rather than just adding to your 401(k) here and there, identify the maximum that your employer will match when you contribute to your retirement account. Then, aim to meet that amount so that you can get the maximum “free money” savings throughout the year.

2. Make Use of Catch-Up Consultations

One of the reasons why it’s important to start saving early if you can is that yearly contributions to IRAs and 401(k) plans are limited. The good news? As of the calendar year that you reach age 50, you’re eligible to go beyond the normal limits with catch-up contributions to IRAs and 401(k)s. So if over the years you haven’t been able to save as much as you would’ve liked, catch-up contributions can help boost your retirement savings.

3. Automate Your Savings Plans

Thanks to modern technology, many banks and financial institutions have APIs set up that allow you to automatically set up payments to your retirement fund. The benefit here is that you can set the automation to pull money from your bank on a certain day of the month.

The benefit of this is that you don’t accidentally miss a payment to your retirement plan. Additionally, by setting up automatic payments, you know that a certain amount of money is going out of your account each month. This can make it easier to budget around your retirement savings.

4. Delay Social Security Savings

Another tactic for putting more money aside for retirement is to delay your Social Security benefits. Although this might sound counterproductive, the way this works is as follows.

Starting at age 62, you can receive reduced Social Security benefits. However, each year you wait to take your benefits, up until age 70, you earn what are called “delayed retirement credits” of 8% per year. These can obviously increase your Social Security benefit significantly. The result is that once you’re ready to begin your retirement payments, you’ll have more funds at your disposal every month.

5. Take Advantage of Double Contributions

Another big way you can save for retirement is by contributing more than once to your retirement plan. Although many people aren’t aware of this, some teachers, public sector workers, healthcare employees, and employees at nonprofits are able to add double the amount of cash to their retirement plans.

Of course, not everyone is eligible for these savings. However, for those who are eligible, this can actually allow them to contribute much more to their retirement accounts, all of which can add up to big savings in their golden years.

One thing to note about this benefit is that it’s only applicable to specific 457(b) and 403(b) savings plans. If you think you might be eligible, it pays to check the IRS website, and with your HR person to be sure.

6. Apply for Uncle Sam’s Retirement Savings Credit

Lower-income earners can also take advantage of savings credits to help them save for retirement. For instance, Uncle Sam’s Retirement Savings Credit offers a tax credit of up to 50% of your retirement plan contribution.

There are income limits for this credit, depending on whether you’re single or married. However, even just that extra boost can make a big difference when it comes to your retirement savings.

7. Consider Where You’ll Retire

Many individuals don’t realize that the location they choose to retire in can have big implications for their nest egg. A few states actually have no state income taxes, meaning that you won’t have to pay those taxes on your income during retirement.

A few of these states include:

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Texas

Washington

Wyoming

In addition, most states don’t tax Social Security income. As a result, you won’t have to worry about paying additional taxes on this type of income once you retire.

Final Thoughts

Saving for retirement can be daunting. However, with the right plan in place, you can start building a nest egg that will offer enough cash for you to comfortably enjoy your golden years.

Small steps like taking advantage of savings credits or meeting your company’s match amount can lead to big earnings later down the line. Consider implementing these 10 tips, and enjoy larger income streams during retirement.

Thinking about retirement can be daunting. There’s a lot to consider, and many times, people don’t start planning until the last minute. To make planning for retirement a more streamlined process, there are a few guidelines you can follow. This guide explores some of the most commonly given retirement planning advice. 

Rule #1: Begin Putting Money Aside ASAP 

One of the first recommendations of retirement planning is to start saving early. The earlier you start saving, the sooner you’ll have enough of a fund built up to retire comfortably. Although saving for retirement can be started at any age, your early 20s is often a good time to get going. The power of compounded growth over time ( especially decades) should not be underestimated. If you can direct the bulk of your early years retirement savings to a tax deferred or tax free account such as an IRA or 401k, the compounding effect is even more powerful, as there is no interruptions for taxes due for all those many years. That way, by the time you reach your golden years, you’ll have a nice nest egg built up. If you have already advanced in your career, the only time better than your 20s is today. 

Rule #2: Save As Much As Possible 

Another retirement precept is to save somewhere between 10 and 15 percent of your current income each year for retirement. This is a great starting amount to help you start putting away cash for later in life. However, this amount may need to be adjusted depending on your circumstances. If you’re unable to contribute 15 percent but your company offers a match up to 3 percent, can you contribute up to the match? 

On the other hand, if your retirement years are fast approaching, you may want to put aside more than this. In that situation, you could increase your savings to as much as 20 to 25 percent, even if this means some negative adjustments in your current spending habits. 

Rule #3: Have a Liquid Emergency Fund  

Having an emergency fund is a key aspect of any financial plan. During your retirement, this becomes even more important to help pay for medical bills or other unforeseen emergencies that may arise. In general, retirees should try to have about 6 months’ worth of income in a separate, accessible savings account for emergencies. This money can then be used without dipping into retirement funds in the event an expense requiring cash rears its head. 

Rule #4: Determine a Withdrawal Rate That Feels Safe for You 

One of the most common retirement recommendations that experts make is the 4 percent rule for retirement planning. This strategy assumes retirees withdraw no more than 4 percent of their retirement savings each year. Each year, retirees will need to adjust their withdrawals for inflation.  

To put this into context, let’s go over an example. Let’s say that you save up $1 million for retirement. Using the 4 percent rule, you would withdraw $40,000 from that accumulated base in your first year of retirement. The next year, if the inflation was 0 percent, you would withdraw another $40,000. The following year, if inflation goes up 1 percent, you withdraw $40,400. Then, each year after that you would continue to adjust your income based on the inflation rates.  

Despite this rule working much of the time, there are a few caveats. For one thing, this rule is based on a 30-year timeframe. Eventually, you do start to draw down balance, and if you end up living for more than 30 years, then you may not have enough cash when you need it. Additionally, this retirement rule doesn’t account for taxes or other fees. If you are using your tax deferred retirement account balance to cover these fees and taxes, then you will likely deplete your funds sooner.  

Rule #5: Pick Low-Cost Funds 

Another retirement guide is to choose investments that have low carrying costs. Doing so means that you can maximize your investments without having to spend too much. Investing in target date funds is a practical option for many people since the expense ratio is significantly lower than other types of investments. 

You’ll also want to remember that some investments incur additional expenses. For instance, it’s important to consider the expenses that mutual funds and exchange-traded funds (ETFs) charge, as well as the commissions that are paid for selling or buying. You can also look for investments that don’t charge commissions. If your time frame is long enough ( i.e. more than 10 years) you can consider just buying and holding some core investments instead of  changing them frequently. 

Rule #6: Consider How Much Income You Will Need in Retirement 

One of the most common retirement rules is the 80 percent rule. Basically, this rule implies that you’ll need about 80 percent of your pre-retirement income during your golden years. Why wouldn’t you need 100 percent of your pre-retirement income? It’s generally assumed that people will not incur the same expenses as when they worked. 

However, this rule has generated controversy. That’s because new research has shown that retirees may actually spend the same amount that they did pre-retirement. Some reports even state that spending increases, since many individuals begin to enjoy new leisure activities with their increased free time. Still, as retirees get used to their retirement and settle into patterns, they may start to develop habits that can keep them in check. The key is to identify your goals in retirement and determine how much income you will need to meet those goals and lifestyle choices. 

Conclusion  

The sooner you start planning your retirement, the better. You’ll be able to start relaxing and enjoying the finer things in life. Just remember these rules. Doing so will set you up for success and leave you with the tools you need to have healthy, successful, and financially rewarding golden years.