No matter what career path you choose, you'll want to know how to get the most out of planning for the future.
After all, when you retire from your first career, many of your expenses will continue. There are still everyday bills to pay plus unexpected costs that can sneak up on you. Not to worry. If you maximize retirement savings, you can make the most of your next chapter.
From how much to save for retirement to what percentage of income should go to retirement, and how to replace your salary when you get there, here are six strategies that can help:
1. Take responsibility for your retirement
When our parents were starting out, they probably didn't think about how much to save for retirement. Pensions were more common back then, particularly in the healthcare and education fields. As a result, many employees were all but guaranteed a lifetime income in retirement, typically based on their salary and years of experience.
However, pensions are less common today. What this means for workers: You're in charge of your own retirement, so it's smart to take a proactive approach to maximizing retirement saving, tracking your investments and figuring out how to convert your savings into steady income in retirement.
2. Start to protect your income by using a diversified retirement plan
While you're saving for retirement, it's important to diversify your assets among different types of investments to help reduce your exposure to market risks. The same principle holds true for taking income in retirement: Creating an income plan that includes money from different sources can help you cover the expected, and unexpected, risks that can come with retirement.
There are a number of ways to create diversified retirement income. Combining at least a few of the sources that are listed in the following chart can help you better protect your income from the risks that retirement may bring.