3 important components of retirement planning
January 17, 2011
While the economic downturn has drastically changed the retirement plans of many baby boomers, there's still time to try and make the golden years as comfortable as possible. All it takes is some strategy and prudence. Here are three thing to keep in mind when when planning for the future:
1. Saving should be a top priority – One of the most effective ways to build up a nest egg is to change priorities. Consider needs and wants so that it's easier to cut out unnecessary expenses.
2. Retirement can be delayed – It's not necessary to retire as soon as possible. In fact, there are real benefits to working during one's golden years as Social Security savings will accumulate until the age of 70. Employer health plans can often save retirees money as well.
3. Minimize caregiving expenses – Many baby boomers are part of the sandwich generation, which means that they are looking after their children and elderly parents at the same time. This can wreak havoc on careers and finances. Families may want to consider installing a senior alert system in a residence so that an older adult has a way to send a medical alert to loved ones in the case of an emergency.