Make the most of your remaining paychecks to save for retirement. How much money you will need to set aside for retirement -which for many people could last 30 years or more -will depend on a variety of factors. Among them: When do you expect to quit working? Will you continue to earn some income part-time? How much money do you have in savings and pensions? What kinds of expenses will you incur for housing and health care?
Because the future is uncertain, it makes sense, while you are still working, to put as much money as possible - 10 to 20% of your annual income, if not more, into savings for your golden years. Also make use of employer-sponsored retirement plans, especially if you will receive matching contributions, and tax advantaged IRAs.
Try to reduce or eliminate debt. Another way to save more money now for a more enjoyable retirement later is to cut back on unnecessary expenses, especially if you will need to go into debt to pay for them. Try to payoff most or all of your credit card balances and other loans to save on interest charges and avoid being burdened with repayment during your retirement years.
Develop a plan to stretch your money through a long retirement. The idea is to determine where your money will come from during retirement so you will not have to live in fear of running out of money.
Consult with the Social Security Administration. Call 800-772-1213 or go to www.socialsecurity.gov and learn how much Social Security and pension income you would get each month if you retire early -any time between 62 and your "normal" retirement age -and how much more you would receive if you hold off on retirement. The penalty for starting to collect Social Security payments early can be substantial.
Determine when to withdraw money from your tax-deferred retirement accounts, such as employer-sponsored retirement plans and traditional IRAs. Also periodically review your retirement portfolio, your mix amount of stocks, mutual funds, certificates of deposit, bonds and so on to be sure it is well-diversified. And, as you get closer to retirement, consider a more conservative investment strategy than in the past so you can avoid losses to principal that could mean having to postpone retirement or struggle financially.