Financial security in retirement doesn’t just happen. It takes planning and commitment and, yes, money. And if you want to be able to do lot of travel in your retirement, then the planning starts now!

Every time the word retirement pops up, everyone instantly thinks of finances. Yes, financial security is everything for anyone thinking retirement or headed there. Most people nowadays do not wait till they reach the age limit for retirement, the number of those taking early retirement is constantly increasing. As a result it is very important to note what you need to take into consideration when planning for your retirement. Below are some facts about retirement:

• More than half of people do not plan for their retirement in advance
• Most Americans spend twenty years in retirement on average

1. Start saving, keep saving, and stick to your goals
Saving is very rewarding so whether you are doing it to secure your retirement years financially or it is simply for investments, never stop saving. You can always start with small amounts and then keep increasing with time. If you begin saving early enough, you will be able to accumulate more money. As you make plans for your savings always have retirement as a priority. Make plans and abide by those plans to the latter.

2. Know your retirement needs
Retirement can be quite expensive contrary to what most people think to what most people think. The way to a financially secure retirement is to plan ahead otherwise, you will face financial challenges that will force you to lower your living standards. A retirement calculator can help you plan.

3. Contribute to your employer’s retirement savings plan
Sign up to retirement plans provided by your employer, contribute as much as you can towards it. Since deductions are automated, you will always be forced to contribute without failing.

4. Learn about your employer’s pension plan
Confirm whether an existing pension plan provided by your employer covers you. You can request for an individual benefit statement to check whether the benefits are worth. You also consider what happens to your pension savings when you switch jobs. Also check whether you are part of your spouse’s benefits.

5. Consider basic investment principles
You savings style will directly determine how much you save. Be aware that economic challenges such as inflation may affect your savings. You should also note how your savings are invested and your investment options. You can invest into several different investments, this way you will be able to cut the risks and boost returns you are entitled to. Knowledge on management of funds is directly related to financial security.

6. Don’t touch your retirement savings
Never withdraw your retirement savings. This would have a considerable effect on your principal amount and you would not want that. If you have to switch from one job to another, let leave your savings in your current account.

9. Find out about your Social Security benefits
Calculate how much you are entitled to from your social security benefits. You can use the retirement estimator to calculate. In many cases it is normally about forty percent of what you were earning before your retirement.