Are you wondering whether you will be able to have a comfortable retirement? Well, you should because research shows that at least 66% of American only have about $50,000 by the time they retire. That is barely enough to live on if you don’t have another source income. Moreover, 31% don’t have any retirement savings, and only 7% have savings that can offer them a decent life in retirement. Working towards your retirement should start now, otherwise waiting may mean that it’s too late to change things, or more realistically, it will take significantly more sacrifices. So what are the signs that you are on track to retirement, and what can you do to hasten your way there? Those are some of the questions we will help you answer in this list of the 10 Signs That You’re on Track to Retire.
You Know Your Savings Rate
Do you know your currently savings rate? If you do, then you are doing great. It shows you have been working on your retirement plan and you know what needs to be done to secure it. Your savings rate is simply the total money you save annually, divided by the amount of money you earn annually. The greater the Savings Rate, the better off you are with regard to having a good retirement.
Spending Less of Your Income
How much money of your income do you spend? The more you spend, the greater the chances of missing your savings target. Furthermore, it means that you will have little to invest even if you stumbled on a good investment opportunity. However, if you spend less than half what you earn, then that’s a good sign that you are heading to a possible comfortable retirement.
You Don’t Struggle to Pay Your Medical Expenses
This is an important sign to watch out for because as you get older, your need for medical care increases. Therefore, if you are struggling to pay for your medical expenses now, there is no telling that you will have it easier when you retire. Chances are, you may not be able to meet all your medical expenses. On the other hand is you can comfortable pay for your medical expenses, it’s a sign the trend is likely to continue even in your retirement.
You Don’t Have A Credit Card Debt
This is obvious for many people because debt means that you have less money to your name. If you don’t have any credit card debt, it’s a sign that you are living well within your means, which is a good sign.
You Know How Much Money You’ll Need to Retire
If you know the amount of money you need to retire, then you also know what you need to do to get there. Even if you aren’t on track yet, it’s a good sign. All you need to do now is take action and start saving to secure your retirement.
Maximum Contribution to Your Employer Contribution Plan
Are you making your maximum contribution to your employer contribution plan? If you are, then that’s also a good sign. Being unable to meet even the minimum recommended contribution is a bad sign and you should correct it now.
You Aren’t Planning to Rely on Social Security
Most people who have made up their mind to rely on social security are headed to a difficult retirement. If you aren’t one of them, then it’s a good sign, and you should continue making savings for your retirement.
You Haven’t Borrowed From Your 401k
The 401k retirement savings plan is a great way to secure your future as a retired citizen. If you haven’t borrowed any of your saving to meet an urgent need, then you are on good track to enjoying a comfortable retirement.
You Can Live Off of Your Current Savings
How long can you live on your current savings? If you can live on them for at least a quarter of the time that it tool you to save those funds, then it’s a good sign. On the other hand if you cannot, then that’s a bad sign, you need to start saving more.
You Have Talked to a Financial Expert
Have you had time to seek a financial expert’s opinion on your retirement plan? Well, you have, then you are On Track to Retire. All you have to do is to implement what you discussed and agreed on with your financial expert.
We hope that you found this list on 10 signs that you’re on Track to retire to be informative, and you will make the necessary adjustments. We wish you well as you work to take full control of your retirement.