What are the first steps of retirement planning?

Shawn Plummer

CEO, The Annuity Expert

Retirement is an inevitable phase of life that everyone will eventually face. Therefore, preparing and planning are essential to ensure a comfortable and financially secure future. But where do you start? What are the first steps of retirement planning? This guide will explore the initial steps you should take when planning retirement.

Determine Your Retirement Goals

The first step in retirement planning is to determine your retirement goals. Ask yourself questions like, how much money do you need to retire? At what age do you want to retire? Do you plan on traveling or living a more luxurious lifestyle? It’s essential to understand what you want your retirement to look like clearly. This will give you a target to work towards and help you create a plan.

Use our annuity calculator to know exactly what you need to save to reach your retirement income goals.

Determine Your Retirement Goals

Evaluate Your Current Financial Situation

Once you have determined your retirement goals, you must evaluate your current financial situation. This includes reviewing your income, expenses, savings, and investments. By understanding your financial position, you can identify areas where you need to make changes to achieve your retirement goals.

Start Saving for Retirement

Saving for retirement should be a priority. One of the most effective ways to start saving is through an employer-sponsored retirement plan like a 401(k) or IRA. You can open an individual retirement account (IRA) if your employer does not offer a retirement plan. Start by contributing a percentage of your income towards your retirement savings and gradually increase it over time.

Manage Your Debt

Managing your debt is crucial when planning for retirement. Start by paying off high-interest debt like credit card balances or personal loans. Then, plan to pay off your debt over time to reduce the interest you will pay. Finally, avoid taking on new debt and prioritize paying off existing debt.

Seek Professional Advice

Retirement planning can be complex and overwhelming, so seeking professional advice can be helpful. A financial advisor can guide you through the retirement planning process and help you create a plan that aligns with your retirement goals.

Next Steps

No matter your age or where you are, it’s never too early or too late to begin planning for retirement. It may seem overwhelming, but the steps to ensure a comfortable and secure future can be simple. First, create a plan aligned with your goals by determining what they are, evaluating your finances, starting to save, managing any debt, and seeking expert advice. Then, make it today to learn more about improving your financial security and preparing for retirement. Whatever questions you may have, we are here to help. Contact us today and request a free quote for a successful retirement.

The First Steps Of Retirement Planning

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Frequently Asked Questions

How much money do I need to retire?

The money you need to retire depends on your lifestyle and expenses. However, a general rule of thumb is to save enough to replace 70-80% of your pre-retirement income.

When should I start saving for retirement?

It’s never too early to start saving for retirement. But, of course, the earlier you start, the more time your money has to grow through compound interest.

What other retirement savings options besides a 401(k) or IRA?

Other retirement savings options include a pension plan, annuities, or real estate investments.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top