Planning for retirement is one of the best things that you can do. Knowing how to set yourself up financially and otherwise will give you peace of mind. This article will provide you with some of the information you need to consider. Take notes as you go along for the best results.

Determine the costs you will face after you retire. Studies show that the average American requires at least 75 percent of their normal income to survive during retirement: that’s 75 percent of the salary that you are earning right now. People who already receive a low income may need around 90%.

When you plan to retire, save some money ahead of time. Set aside those savings for just your goals. Create a retirement plan, figure out how to accomplish it, and stay with it. Try starting small and increasing your savings as much as you can a month to reach those goals.

Enjoy yourself! One of the great things about retirement is the ability to be able to do whatever you want. Make sure you take advantage of the time and do things that you enjoy. It’s easy to find yourself in a rut where you want to stay at home, but look for things that are fun.

Refrain from taking early withdrawals from your retirement account. These withdrawals will have substantial penalties, and will take away from the money that you have set aside. Typically, you will be charged a fee of 10% on top of the federal and state taxes that you will pay, reducing your amount by almost half.

If your employer offers a retirement plan, invest in it. Many employers offer a matching plan which increases your savings, so make sure you invest at least up to the matching amount. In addition to saving for retirement, a 401k plan will help lower your income taxes every year.

Think about partial retirement. If you are not able to fully retire, consider doing a partial retirement. This could take the form of keeping your current career, but only part-time. Once you are more financially set, you can move into complete retirement.

Are you frustrated because the company you work for does not have a retirement plan? Take matters into your own hands. Go to your employer and ask them to get started with one. You may be surprised at how willing they are to take this step and become more attractive to potential employees.

When you calculate your retirement needs, try planning on living like you are now. A good rule of thumb is to plan on having about 80% of your current income available in retirement. When you do retire, try to live frugally to extend your savings.

Make spending money on yourself a priority in retirement. While many parents continue supporting their adult children in some way or another after retirement, you should not do so unless you can truly afford to. Make your children act as independent adults, and use your money to meet your necessary expenses, wants and needs.

Be sure to ask your employer about their pension plan. Though you may not think much about it when you are younger, this will become a big deal when you are older. If you are stuck with a shoddy pension plan, you may find it hard to pay your bills once you are retired.

Even if you have a 401k or pension plan, strongly consider an IRA account for more savings. You can contribute up to $5,500 a year, or even more after age 49. The tax savings vary depending on what type of IRA you choose, but they are too powerful to ignore.

Think about teaching or consulting during your retirement. Since you’ll have a nest egg set up, you won’t really need full time income year round. Instead, you can teach classes or do freelance advising to clients when it suits you. You’ll have freedom of schedule and still be bringing in some money.

Avoid making assumptions about retirement, because things rarely turn out the way we plan. Seek the advice of a qualified professional, and put your financial house in order long before you actually stop working. Most people think they’ve got plenty saved up, but it all goes very quickly, and they usually find themselves unprepared!

If you are retired and looking to downsize, consider looking into a retirement community. These communities offer a variety of amenities to retirees such as pools, entertainment, exercise classes and even medical facilities on-site. A retirement community is also a great place to meet new people and make friends, especially if you often feel lonely.

It is very important for you to know whether or not your retirement benefits have been vested. No matter what, you are able to receive the money you have given to the retirement account of your workplace. However, you may not get the share that your employer put in if you are not vested.

Find out what your benefits from the Social Security Administration will be. Though they will mail you an update each year, you can also go online to obtain this information at any time. This will give you a good idea of how much you will receive when you do retire.

Many people have lost some of their retirement fund because of a poor economy, so they may need to work part-time when they retire. There are special websites that help retired workers find part-time work to pad their income. Holding a part-time job can be a source of enjoyment for many seniors.

Now, you are aware of some necessary parts of your retirement plan. If you did not take notes, you may want to bookmark this page. Come back to it frequently as you make your plans. The more prepared you are, the more you can enjoy your retirement and the years leading up to it.