A retirement planning organization has recently shared some useful financial planning advice to boost retirement benefits in 2017. This advice would help people to make a New Year resolution to increase their retirement savings this financial year. The advice is divided into various parts to ensure better grasp and understanding.
What is the Financial Planning Advice to Boost Retirement Benefits in 2017?
The first bit financial planning advice to boost retirement benefits in 2017 shared by Pentegra, a top provider of fiduciary outsourcing solutions and retirement plans is that everyone should start saving for retirement as early as possible. A recent study from Money rates says that people who start saving towards retirement in their 20s are 66 percent more likely to retire before they reach 60 years of age as compared to those who start savings after reaching their 30s.
Enroll in an Employer Sponsored Plan
The second bit of financial planning advice to boost retirement benefits in 2017 is to always take the advantage of employer sponsored plans like a 401(k) as they are vital. If one is not sure about the amount of money that needs to be contributed towards the 401(k) for better results, one should take the assistance of a skilled financial advisor.
Create a Budget
Another useful advice is that people should analyze the fixed and variable expenses of the current time to create a realistic budget. They should also evaluate the finances to determine the debt to income ratio and start paying off the debt with highest interest rate first. Then the future spending should be anticipated to ensure one has enough income to cover all the expenses. Being prepared for the unknown is also highly recommended.
Remember the Investment Risks
Though no one likes to opt for high risk investments but it is a fact that all the investments carry some risks. One should keep the inflation risk in mind as well. People should create an appropriate asset mix as per their age, time horizon to retirement, situation and never put all the eggs in a single basket.
Include the Partner
The most vital financial planning advice to boost retirement benefits in 2017 is to ensure that one should include his or her partner in the financial planning for retirement so that there is no excess dependency on one person’s retirement income. Joint savings are a better route.