One day you’ll be retired and relaxing on the beach, watching the sun go down. Whether your brow will be creased in worry, or you’ll have a big contented smile on your face will depend on this-whether you prepared adequately for your retirement. Preparing for your retirement should be done early enough and diligently. You do not want to get to your retirement only to realize that your retirement savings are not enough to last you the entirety of your retirement/life. If you have been wondering whether you are doing enough to save for your retirement, here are signs that should tell you that you aren’t:
You have not started saving
If you are waiting to start saving once you get to age 40, you are setting yourself up for a very hard retirement life. The earlier you start saving for your retirement, the better; as you will have more money saved for your golden years.
You have a hard time paying for medical bills
If paying out-of-pocket medical expenses is a struggle to you currently, this is a sign that you need to prepare yourself very well for old age, as far as medical expenses are concerned. This is especially so because as you grow older, medical expenses becomes even more pricey.
You have credit card debt
If you have credit card debt, there is a high probability that saving for your retirement is not even on your list of priorities right out. Straighten out your debt and get to saving. And while you are at it, you might want to avoid accumulating any more credit card debt.
You’re spending more than you’re saving
If a huge chunk of your income goes towards expenditure which is not even accounted for, you are definitely not getting prepared for retirement the right way. It is recommended that you dedicate 10 to 15 percent of your income towards your retirement savings.
You do not know how much money you will need to retire
If you have no clue how much money you will need to continue your current lifestyle after you retire, high chances are you are not saving enough, if at all you are.
You’re not getting the full match from your employer’s 401(k) match
If the company you are working for offers to match a portion of your 401(k) contributions, contribute enough money to get the full employer match. This is a quick and easy way to boost your retirement fund, and you will actually be getting free money. If your employer offers this program, you are doing yourself a great disservice if you are passing it up.