Savings Retirement Calculator Tips
The new reality is that many people are concerned about their retirement. They government is in trouble and as a result they are going to have to work longer if they depend on Social Security for their retirement plans. Their investments have done poorly so their investment accounts are not where they thought they would be at this point. Many are either laid off or have had hours and pay reduced. So what is the answer? Enjoy life and spend more on fun. WHAT? Now that is not the typical Savings Retirement Calculator Tips you would think to receive, however it maybe the best route to take. The following Savings Retirement Calculator Tips can help you bridge that gap.
Top 4 Savings Retirement Calculator Tips
Savings Retirement Calculator Tip #1: Maximize Your Social Security Benefit – First, let’s contrast the approach of working until 70 and retiring at 62 from a Social Security standpoint. If you are a top earner, your Social Security will grow from a benefit of $21,600 retiring at age 62 to $38,300 for a retiree at age 70. This means you will take less out of personal savings. That $16,700 will sit in your retirement account and continue to grow after retirement.
Savings Retirement Calculator Tip#2: Add Years And Interest Earnings To Your Retirement Account – Another factor is that working until age 70 means you will be earning money for eight more years instead of pulling money from your retirement accounts. This can mean more deposits to your retirement account or at least 8 years of growth in the account. Time is a great factor when saving. More time means more compound interest.
Savings Retirement Calculator Tip#3: Spend Money For Retirement On Yourself – So for many, the question is do I really want to work until 70? The answer can be yes but not as hard. If you take the approach that you are going to not touch your retirement nest egg, take the money that you were going to deposit in your retirement account and enjoy life the prospect may not be so bad. This means they money in the account continues to grow but you are not going to make any or at least reduce the amount of your deposits.
Savings Retirement Calculator Tip#4: Spend Savings From Reduced Expenses On Fun Things – There are other factors that come into play and that are reduction of expenses. When people reach their 60’s for the most part they are finished raising their children. They no longer have the added expense of college or private schools. The costs for food, clothing etc usually go down as families mature. For many people this is like receiving a huge raise.
In total, even though working longer is not something that most of us want to do. There are several reasons to work to the age of 70 for many of us. The ability to enjoy life while not depleting your retirement savings can be a very attractive option. Making the decision to work longer can make more sense in so many ways.