Stages Of Retirement Planning: Ten Years To Retire

Making sure that you have enough money to last your golden years requires thorough

retirement planning that goes through different stages: from a few decades away from retirement to the point that you retire and start life as a retiree. Long before workers finally quit the workforce and retire, they need to ensure that they are financially and emotionally ready for the transition by implementing strategies to build your savings, earn money from viable investments, and constantly rechecking the value of your nest egg against what you need to live on.

This method of partitioning how you plan for retirement can make your planning easier, as well as relevant to your current level of financial stability. If you are younger, or still have some time to go before you retire, looking at retirement planning in stages can be a motivation, and make the effort much more manageable as well. If you are a decade away from your expected retirement, here are some guidelines you can follow to help you meet the ultimate goal of retirement security based on the time you have and the state of your finances:

For most American workers, the last several years prior to retirement are the ones that usually come with the largest amounts of generated income. The relatively bigger earnings are also indirectly compounded as you may no longer have some of the financial obligations you were previously committed to, such as paying down your mortgage and supporting your children through college.

At this time, you will have to make sizeable, above-average contributions to your savings accounts for retirement via your employer-sponsored plan, an IRA, or other plans that use tax-deferred annuities and other comparatively stable investments. You will have to focus on preparing for the day you start drawing down from your retirement funds, so you should have enough of a nest egg to achieve the retirement lifestyle you want.

If you are a worker aged above 50, you can max out your savings plan benefits with catch-up contributions, which are additional allowable amounts above the contribution ceiling. These, work for IRAs and other savings plans in the workplace. Also, you will need to have enough resources to cover unforeseen expenses by having the appropriate insurance coverage. Choose these based on the age you want to retire, your financial liquidity, physical health, and so on, and implement them in your retirement planning in stages so as not to become too burdensome on your overall nest egg.

by: Katherine Smith

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