As baby boomers are rapidly approach what used to be defined as “retirement age”, a big concern often comes up about whether there will be enough retirement savings in place to be able to live a comfortable life later in life.  There have been plenty of rumbles from Washington that the Social Security system will not be able to bear up under the huge demand the boomer generation will put on it.  So few baby boomers are looking to depend on that money being there, even though we are all paying into it every month.

On top of that worry, the method our parents used of working for the same company for 50 years and retiring with a hefty financial package and a gold watch has gone the way of the dinosaurs.  Long ago corporate America began to eliminate retirement packages as a straight forward benefit.  So many baby boomers find themselves approaching retirement age with insufficient retirement monies to support them.  What is needed is a solid plan to attack this problem while boomers still have a good 10 to 15 years of working potential in them.  Some principles of that plan might be…

Simplify Your Life.

When the kids finish college and get out on their own, you may find your life could be simplified considerably.  You might not need as big a house and many of the extras that were important when you raising a family in that house.  Do a thorough review of your assets and your expenses.  You will find you can cut costs significantly and even begin to cash in on some of the extras you have had all these years and put all of those savings into the bank as a hedge for the day when you are ready to retire.

Pack the Bank Account Now.

The empty nest syndrome isn’t all bad.  There are some real benefits to returning to a lifestyle of just you and your spouse discovering life together.  You have conquered many challenges raising a family in this tough world and you deserve to be proud of your life of accomplishment.  But now you and your spouse can take on a big challenge that is just for you which is to get out there and generate income for retirement.

Mom can go back to work and both members of the union can take on as much work as can be found.  Often in the mid to late fifties, the primary bread winner may be able to retire from that job they have held down for several decades.  But instead of beginning to live off of retirement funds, get another career going that can generate another ten to fifteen years of income.  With good budget management, it’s very likely you will be able to bank at least one entire income if not more and put all of that money back into retirement. 

Working with your investment counselors you can find ways to shelter that extra income so it stays out of the tax system until you are ready to use it.  The good news is that this push for productivity and revenue generation late in life can lead to a healthy retirement budget that can benefit you well as you finally sit back to enjoy your leisure years in the rocking chair taking care of the grandkids.

Identify a Money Generator that Can Stay With You

There are second careers that you can find that will become a good source of supplemental revenue even after you retire.  Start now looking for a potential “retirement career” which will be a line of work you can do even after you retire to generate additional income for you.  Writing or internet work is a good way to set up a home based business that you can continue to work at as long as you can type, see reasonably well and your thinking capacity is sound.

Other examples of retirement careers are part time jobs as apartment managers or care givers, sales jobs in using the expertise from your primary career or jobs that are somewhat non-taxing such as greeting customers at a Wal-Mart or working in a book store.  And these retirement jobs have the double benefit of adding to your revenue resources and keeping you active and enjoying life in your retirement years.  And that is what all of us want.

Are you ready to start planning for your retirement?  Whether you are 30 years old or 55 years old, there are a number of important steps that you will want to take.  For your convenience, a few of those steps are highlighted below.

The first step in planning your retirement is examining your future.  There are a number of important questions that you will want to ask yourself.  Where do you want to live when you retire?  How do you want to live?  What do you want to be doing?  Knowing your retirement needs and wants is important when looking to create a retirement savings plan.  Even if you are only 20 or 30 years old, you can still plan for your retirement.  A few small changes to your dream plan won’t be the end of the world.  At least you have a starting point to build on.

As previously stated, knowing what you want and need to get out of your retirement is important to creating a savings plan.  Why?  Because it can help you determine how much money you need to have saved.  Having a set goal to reach is one of the best ways to accurate and successfully save and prepare for your retirement.

Next, are you employed?  If so, examine your company’s retirement plans, such as their 401(k) programs.  How much have you been contributing to your 401(k) account?  If nothing, you will want to start.  Why?  Because it is easy to do so.  Inquire to see if you can have your paycheck set up so that a small amount of money will automatically be deposited into your 401(k) account.

As an important note, 401(k) accounts are advised, as they are considered tax sheltered.  This is because your taxes are much lower when you contribute money into your 401(k).  Also, see if your employer contributes money as well.  There are some companies throughout the United States that will match the amounts contributed by their employees, which is you.  What is better than free money for your retirement?  In addition to a 401(k), also examine IRAs (Individual Retirement Accounts).

In addition to 401(k) and Individual Retirement Accounts, you do have other options.  If this process seems overwhelming for you, you should seek professional help.  There is nothing wrong with doing so.  In fact, seeking professional advice can help prevent you from making many common mistakes.  When looking for help, it is a wise idea to speak to a professional accountant or a financial advisor. 

Even though you have made the decision to save for retirement now, there may come a point in time when you find yourself on a fixed income.  It is no secret that living day-to-day on a fixed income can be stressful, overwhelming, and fearful.  With that said, it is still important to keep on saving for your retirement.  Any money that you can put into a 401(k) account or an IRA, do so.  A few dollars here and there can easily add up, and even make it possible to install the stairlifts you have been needing. 

In keeping with hitting a rough patch in your finances, if you are not use to living on a fixed income, you may want to take steps to improve your financial standing.  This is a good plan to have, but stay away from your retirement savings.  Whether you have spent the last year or ten years saving for retirement, try to leave that money alone.  Dipping into your retirement savings can have negative consequences.  If you are required to pay the money back, you may have to pay interest or taxes.  Even if you don’t have to pay the money back, it is still less that you will have for your retirement years.  Unless you are in a truly serious, life or death situation, leave your retirement savings alone.

As you can see, saving for retirement isn’t really that hard.  Unfortunately, many news organizations and other similar websites make it seem harder than it really is.  As an important reminder, if you need financial planning help, seek it.