It’s never too early to start planning your retirement. There’s a lot to consider from how much income you’ll have in your retirement years to where you’ll plan to live once you’re retired and everything in between. So, what’s the right age to begin planning for retirement and what should you be doing now to be ready?

We’ve got you covered with everything you need to know about planning for retirement in easily understood steps.

Start by Deciding When You Want to Retire

The first step is deciding when you want to retire. This will help determine how much money you’ll need to have saved as well as give you a timeline for other important steps in the retirement planning process.

If you’re not sure when you want to retire, think about what your goals are for retirement. Do you want to retire as soon as possible? Or do you want to keep working part-time during retirement? Once you have an idea of when you’d like to retire, you can start thinking about how much money you’ll need to have saved.

Save, Save, Save

The next step is saving as much money as you can. It’s never too early to start saving for retirement, but the sooner you start, the better off you’ll be. Begin by contributing to a 401(k) or IRA account. If your employer offers a retirement savings plan, such as a 401(k), make sure to contribute at least enough to get the employer match.

You may also want to consider saving additional money in a taxable brokerage account. This can be a good way to save even more for retirement while still having access to the funds if you need them before retirement.

Decide How Much Income You’ll Need in Retirement

In order to have a successful retirement, you’ll need to make sure your income lasts throughout your retirement years. Begin by estimating your living expenses in retirement. Make sure to factor in things like healthcare costs, inflation, and any travel or hobbies you plan to pursue.

Once you have an estimate of your living expenses, you can start thinking about how much income you’ll need in retirement. Many experts recommend having at least 70% of your current income saved so that you can maintain your current lifestyle in retirement. However, this may vary depending on your specific situation.

Some people may need less income in retirement if they plan to downsize their home or no longer have a mortgage payment. Others may need more income if they plan to travel frequently or take up costly hobbies.

Consider Where You’ll Live in Retirement

Where you live in retirement can also impact your costs and how much income you’ll need. If you plan to downsize your home or move to a cheaper area or even another state, you may be able to reduce your living expenses and need less income in retirement. If you plan to relocate, be sure to find a 55 and older community that will support your needs.

On the other hand, if you plan to travel frequently or live in an expensive area, you may need more income to cover your costs. Therefore, it’s important to think about where you want to live before making any decisions about retirement.

Create a Retirement Plan

Once you’ve considered all of these factors, it’s time to create a retirement plan. This plan should include goals for saving, investing, and generating income in retirement.

It’s also important to review your retirement plan periodically to make sure it’s on track. As you get closer to retirement, you may need to adjust your plan based on changes in your life or the markets.

The most important thing is to start planning for retirement as early as possible. The sooner you start, the better prepared you’ll be for a successful retirement.

Work with a Financial Planner

There’s a lot to consider when planning for retirement and it can be helpful to work with a financial planner. A financial planner can help you create a retirement plan that fits your specific needs and goals.

They can also help you with other important aspects of retirement planning, such as saving for healthcare costs and creating a withdrawal plan for your retirement accounts.

If you’re not sure where to start, consider working with a fee-only financial planner. These planners are required to act in your best interest and can help you create a retirement plan that’s right for you.