Retirement Planning - Age And Stage Affect Your Retirement Page

As recently as the last century, Americans believed they could afford to retire early and lead the good life with employer pensions and Uncle Sam footing the bill. The toughest decision would be whether to keep working until 50, 55 or 60. Then the bubble burst and spattered bad news all around. The stock market collapsed under the weight of late 1990s boom, causing investment values to sink so low investors can barely remember what it was like to be rich on paper.

Corporate scandals have caused workers to second-guess whether their 401(k) accounts would actually be there when they retire. Throw the wishy-washy future of Social Security in the mix and the whole concept of retirement is anything but certain.

These factors and more have given procrastinators all the excuses they need to put retirement planning on hold indefinitely. What's the point, when outside forces are conspiring against you? The point is, you are responsible for making your future happen. Forget about everything else and focus on that. If it causes you to want to take steps immediately, jump right to "Here‘s a Non-plan," a page that coaches you to just do something--anything--toward achieving the retirement goal.

Perhaps you're more of a numbers cruncher and want to do some math. We've got two calculators that can help you figure out retirement, from a purely dollars-and-cents perspective. They won't take the place of learning more about planning for retirement, mind you, they merely put some dollar signs in the picture you're creating. The Ready for Retirement?
calculator has just a few variables and is intended to help you see how close you are to your savings goal. Needless to say, you need to have some savings goals to make it work (wink, wink). Our Retirement calculator makes you do some thinking in addition to plugging in numbers. It's our favorite little tool, if you must know.

Maybe you don't move that fast. Hey, we understand (having practically invented inertia). The stage you should be at in your retirement planning depends a lot on your age right now. So take a breath, find the paragraph below that applies to you, and continue at your own pace. That's the point anyway.

You're Never Too Young For Bad HabitsIn your 20s retirement is an especially foreign concept. But we'd be remiss if we didn't give you a push in the right direction. A quick spin on our procrastinator calculator may help you see what an advantage your age offers. Save just a little money on a regular basis, and it could add up to any goal you dare set for yourself. Be responsible when paying off your school loans and be cautious when using credit cards.

Thirtysomethings Should Do SomethingIn your 30s your biggest asset isn't a portfolio but your ability to earn a future income. Some essentials at this stage include disability income insurance and an employer-sponsored plan (or a traditional or Roth IRA). Start by saving at least what your employer will match and increase the amount every year you're thirtysomething. Have you tried QuickPlan?

Forties Aren't FatalDitto on what's listed above, plus you should be saving at least 10 percent of your earnings every year (emphasis on "at least"). Keep paying off the plastic. Hint: it's easier if you don't keep charging. If you have kids, college funding may be on your mind, but don't let it crowd out thoughts of retirement. Students can borrow money to go to school, but you can't take out a retirement loan.

Fifty Is Just Another "F" WordYour age group will most certainly have Social Security benefits, but they won't pay your entire way. As George W. Bush's advisors keep reminding him, this is not your father's Social Security. You should be saving about 20 percent of your salary every year. Get rid of your consumer debt and prepay your mortgage if possible. For a good time, read what we've got to say about early retirement.

No matter how old you are, now is the right time.