Seven Principles For Retirement Success

Start Now
Procrastination— putting off making a decision is the most common cause of failure. When you're under 40, retirement may seem far away. But every year you delay, it's harder to achieve your retirement dreams. Recent studies have found that American's save only 5% of their income, compared to a savings rate of 50% in Singapore, 25% in Chile, 19% in Japan, 12% in Spain and 11% in Canada. Begin saving now while time is on your side, even if it's a modest percentage of your income, you'll be surprised at how fast your money will grow.

Calculate Your Needs
At what age do you plan to retire? Age 65,established by the Social Security Administration in the 1930s as "normal retirement age", is no longer considered normal. Today, more than half of the country's workers claim retirement benefits before age 65. Others must work beyond age 65 because of changes in the Social Security's retirement benefits age. Once you determine your desired retirement age, you can begin to calculate your financial needs.

Understand The Time
If you think you'll need less money during retirement, think again. While some expenses may drop, others—such as medical expenses, home maintenance, and the tax rate are likely to increase. In reality, experts recommend 70-80% of your current income will be needed to maintain your current lifestyle. Social Security and pensions may provide only 40% of your retirement income, leaving a gap of 60% for you to fill. You'll also need to factor in inflation, which erodes your dollar by 3% per year on average.

Chart A Course For The Future
Whether your calculations show you're well on your way to achieving retirement success or serve as an alarming wake-up call, your goal should be the same— to take full advantage of investment strategies and options available to meet your needs.

Expect To Live A Long, Long Time
It's no secret that people are living longer than previous generations, but how much longer? According to Kiplinger's Personal Finance Magazine, many baby boomers can expect to live to at least age 85. Plan to live even longer- you want to make sure your money outlasts you, not the other way around. The sad fact is that today's average income of households headed by a person over 65 is less than $25,000 a year. Is that your idea of a satisfactory retirement income?

Stick To The Plan
Have a plan and stick to it despite the obstacles that may arise. Put your plan on automatic pilot or remote control with regular, systematic contributions to your employer's retirement plan, your IRA, mutual funds, and annuity accounts.

Seek Out Assistance
To discover how you can achieve your retirement goals, please contact a friendly agent at the Brooks Insurance Group today. Our track record in providing quality insurance and long term retirement saving solutions can help you get on the right track for a worry free retirement.