Understand how Social Security benefits work and decide the optimal age to start receiving benefits based on your financial needs and longevity expectations.
It's never too early to start planning for retirement -- begin saving and investing as soon as possible to take advantage of compound interest and give your investments time to grow. However, you can create a retirement plan at any age that works for you! There are a lot of things you can do to give yourself a more financially secure retirement:
Assess Your Financial Situation: Calculate your current savings, investments, and expected retirement income from sources like Social Security or pensions.
Set Retirement Goals: Determine your desired retirement age, estimated living expenses, and lifestyle expectations (such as travel or hobbies).
Create a Retirement Budget: Develop a budget that accounts for your estimated monthly expenses in retirement, including healthcare costs and potential inflation.
Maximize Retirement Accounts: Contribute to retirement accounts such as 401(k)s, IRAs, or other tax-advantaged savings plans.
Diversify Investments: Spread investments across different asset classes (stocks, bonds, real estate) to manage risk and maximize returns. Learn more at our Investment 101 LibGuide.
Monitor and Adjust: Regularly review your retirement plan and make adjustments as needed based on changes in your financial situation, lifestyle goals, or market conditions. Don't forget to think about inflation!
Consider Healthcare and Long-Term Care: Factor in healthcare costs and consider long-term care insurance to protect against unexpected medical expenses in retirement. How will retirement affect your family?
Get your documents in order: Think about protecting your assets and creating an estate plan (wills, powers of attorney, etc.). Find out more about low cost estate planning from Grow Brooklyn
Find out more about preparing your retirement on these websites:
Consumer Financial Protection Bureau
360 Degrees of Financial Literacy from the American Institute of CPAs
There are many different types of retirement accounts that you can open, and many people choose to open more than one:
Some of these accounts may be opened on your own and some may be offered by your employer. Take advantage of employer matching contributions if available!
Connect with a Brooklyn Public Librarian via chat, email or phone!
Consult with a financial advisor or retirement planner to ensure your plan aligns with your goals and to get personalized advice on investment strategies and retirement income planning. These three BPL partners offer free financial counseling:
What retirement really means is having the freedom to decide what to do with your time when you leave your full-time job! Find opportunities to volunteer, mentor and work part-time on these websites:
New York State Office for the Aging