TIP! Determine how much money you will need to live once you retire. Studies that have been done state that the average person needs about 75 percent of what they normally make today in order to survive retirement.

Not enough people bother to plan for their retirement. They believe there is no need to think about it until it is near, or they think their employer will provide their retirement fund. This can become shocking at 65, but using the below strategies can help.

TIP! Do you worry because you have not begun planning or saving just yet? Take heart! There is no time like the present! Take a look at your spending. Determine how much you can afford to put back every month.

Don’t spend so much money on miscellaneous things when you’re going through your week. Write a list of your expenses to help determine how to cut costs. Luxury items can add up to a pretty penny when you add up their cost over time.

TIP! While you know you should save quite a bit of money to retire with, you also should be sure that you consider the kinds of investments that need to be made. Diversify your investment portfolio and don’t put all your money in one place.

Save continuously from the time you start working until the time you retire. Even if it is only a small amount, start your savings today. As you make more money, put away more money too. By putting your retirement money into an interest bearing savings account, your money will grow exponentially.

TIP! If it’s possible, you may even want to consider waiting a while before digging into your Social Security income. When you wait, you can count on collecting a larger monthly payment.

Regularly contribute to your 401K plan to maximize its earnings. Your 401k allows you to put away pre-tax dollars, meaning you can save more and feel it less in your paycheck. If the employer matches your contributions, they are basically giving you free money.

TIP! Balance your saving portfolio quarterly. If you do it more often than this, you might start reacting emotionally to swings in the markets.

Retirement will free up a lot of your time. Use it to get in shape! You will really need to care for your body in retirement, because it’s important as you age. By working exercise into your daily routine, you may enjoy your retirement even longer.

TIP! Take the time to consider your health care options. Health often declines as people age.

Understand the retirement plan at your company. Sign up for your 401(k) as soon as possible. Learn everything about your plan, when you will be vested in the plan, and how much you should contribute.

TIP! When calculating your retirement needs, plan on living the same lifestyle you do now. To do this, you will need about four-fifths of your current income.

While it is important to put away as much as you can for retirement, you should also think about the type of investments you are making. Be sure that you avoid putting everything in one place; have a properly diversified portfolio. Doing so reduces financial risks.

TIP! Look into finding other retirees that you can spend time with. Finding a group of others that don’t work just like you will allow you to do enjoyable things with them.

Try rebalancing your retirement portfolio quarterly. Looking at it more often may create an emotional vulnerability to market swings. Less frequently may cause you to miss some opportunities. Find an investment agent to help you.

TIP! Attempt to enter retirement free of debt. Your car and mortgage payments will be easier on you if you can pay off a big portion of them before you retire.

Try to spend less so that you have more money. Although you may feel like you have everything figured out, you never know when a financial emergency will occur. Medical expenses or a number of other unexpected bills could really cramp your retirement style if you’re not prepared for them.

TIP! Do not assume that Social Security benefits will provide you with enough money to live on. Social Security benefits may cover about forty percent of your living costs.

Set short-term and long-term goals. Goals make all the difference in terms of things like saving money. Knowing what you are likely to need money-wise makes saving easier. Some simple math can help you plan goals for this week, month or year.

TIP! Once you retire and are trying to make your money go farther, downsizing is something to consider. Even without a mortgage, there are expenses for keeping a large home like landscaping, electricity, etc.

Your retirement plan should be based on a similar lifestyle you have. Estimate that you will need about 80% of your current income each year you are retired. Don’t spend money that you can’t afford to spend.

TIP! When you retire, you can spend quality time with your grandkids. Your children may need help occasionally with child care.

People look forward to retirement to enjoy themselves, but only if retirement was planned well. What steps have you taken to ensure your comfortable retirement? Reading this article was a great use of your time, but now you need to put these into place.