Final answer:
When planning for retirement, consider financial goals, sources of income, retirement calculators, workplace benefits, starting early, and financial targets.
Step-by-step explanation:
When planning for retirement, there are several important factors to consider:
- Financial goals: Determine how much money you will need for a comfortable retirement. Most financial advisers recommend saving approximately 70% of your pre-retirement income.
- Sources of income: Besides Social Security, explore other options such as private market investments, savings accounts, bonds, and annuities. These have varying degrees of risk and return.
- Retirement calculators: Use retirement calculators to estimate how much you need to save and invest for retirement.
- Workplace benefits: Take advantage of retirement savings plans like 401(k)s through your workplace, which provide tax advantages.
- Start saving early: The sooner you start saving, the more time your money has to grow. It's never too early to begin planning for retirement.
- Financial targets: Economists recommend saving around 15% of your income as a good target for retirement savings.