Rome wasn’t built in a day and neither is your retirement plan. Planning for retirement takes years of hard work and accountability. The sooner you get started the better off you’ll be once you reach the age you’d ideally like to retire. To help keep you track read these three tips you should reach by the time you turn 50 to ensure you’re on the right path to achieve your retirement goals.
1. You should know how much you need to have saved
Once you’ve reached your 50s, you only have a decade or so left to save for retirement. So by this point, you should have a good idea about how much you need to save to retire comfortably.
2. Think about how you’ll pay for long-term care
Long-term care is one of the most costly retirement expenses you can face. The average stay in a nursing home costs nearly $7,000 per month for a semi-private room, according to the Department of Health and Human Services. Also, among those who require long-term care, the average person needs it for around three years. At a rate of $7,000 per month, that’s a total of around $250,000 in long-term care expenses.
3. Think about what age you’ll begin claiming Social Security benefits
Nearly two-thirds (64%) of retirees say Social Security benefits are a major source of income, according to a survey from the Society of Actuaries. Because you’ll likely be depending on your monthly checks for at least a portion of your income in retirement, it’s important to choose wisely when deciding what age to begin claiming.
The earlier you file for benefits, the less you’ll receive each month. You can begin claiming as early as age 62, but that will result in a permanent benefit reduction of up to 30%. If you delay benefits until age 70, on the other hand, you could receive your full benefit amount plus up to 24% extra each month. Claim at any age between 62 and 70, and your benefit amount will fall somewhere in between those two extremes.
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