At some point in everyone’s life, it is time to start thinking about retirement. Financial experts recommend that you save 15% of the total income for years to be prepared. The first step is to work with a local bank to start saving.

How Can You Prepare for Retirement?

1. Make a Plan

Creating a picture of financial needs on retirement is a perfect place to start with a long-term plan. While it’s hard to know what expenses will be, make a ballpark estimate. If retirement is a long way off, you may want to assume that housing costs will be lower (mortgage paid off), but medical will be higher. There are apps to help with retirement planning so that you at least have numbers to work with.

2. Establish a Savings Habit 

The most basic way to start preparing for retirement is to create a habit of saving money. This can start with a basic savings account offered by your local bank to start an IRA or other retirement plan through a workplace. With a savings or money market account, it’s easy to set up automatic deposits from checking. Even a small amount like $20 per week can add up over time.

3. Work With a Financial Advisor

Unless you are a whiz in finance, it’s a good idea to work with a financial advisor to help establish a more elaborate retirement plan. They can advise you of the best types of strategies depending on your age, goals, and income. With a professional helping with the investment plan, you may be more likely to implement it and stick to it. 

4. Don’t Touch the Money

One of the most common ways retirement plans get derailed is that the money is used for something else. Because retirement savings are sufficient over extended amounts of time, you’ll want to create a way not spend the money earmarked for retirement. Disciplined individuals may be fine with a regular savings or money market account. Still, most folks benefit from opening a 401(k) plan or IRA that is difficult to withdraw from and penalizes early withdrawal. Most employers who offer a savings or pension option will use some form of a dedicated retirement account. Retirement accounts will almost always provide a more significant growth potential than basic savings, as they are typically large mutual funds.

Ready to start retirement planning? Start at your local bank. In Byhalia, MS, Citizens Bank has been serving the community since 1919. They offer personal savings, money market accounts, IRAs, and a friendly, knowledgable staff who can help you with savings goals. Call (662) 838-2146 for more information or visit the website to see a full list of available accounts.