The trouble with retirement is that you never get a day off. – Abe Lemons

When a man retires, his wife gets twice the husband but only half the income. – Chi Chi Rodriguez

There are some who start their retirement long before they stop working. – Robert Half

Retirement, a time to do what you want to do, when you want to do it, where you want to do it, and, how you want to do it. – Catherine Pulsifer

The above mentioned quotes sum up the joys of retirement, but records have proof, that if you have not planned this factor early in life, the future would be an unworthy soup. You see, retirement is best defined as the age when there is no need to go to the office or the working hours will be reduced. The pay scale will be decreased, and you cannot apply for the positions as per your profile. In recent times, many people choose to retire when they find themselves eligible for public or private pension benefits. Some are, however, forced to retire because of the legislation concerning their age or cannot work due to health ailments. The United States normal retirement age has been 65 to receive benefits from the Social Security (or Old Age Survivors Insurance (OASI). The retirement options may vary depending on the job profile. If you have been a Police Officer in US, retirement can be opted for, with half pay after twenty years of service or three-quarter pay (after thirty years). Military members can opt for retirement after two decades of service. They can be called back for duty in case of an emergency. In this article on how to plan for retirement you will be given information on tips and essential investments for a relaxed future.

how to plan for retirement

It is not that the world of employment has closed the door after retirement. You could still opt for working part-time, and engage in leisure activities or social work. However, there are people who never opt for retirement or choose to go back to work because of various reasons. It could be due to non-planning of retirement, need more money for their lifestyle, social status etc.

You have to be optimistic, or it will be the end of the road. You can be called by relatives to take care for aged parents or grandchildren. The only way to escape from these challenges is to plan a healthy, worthy and cash retirement plan.

How to Plan Your Retirement

Retirement in recent times has become very costly because of two reasons – medical insurance and the most important one, social security price can be reduced.

Understand The Power Of Money

Compound interest is the best way to save your hard earned money for a long future. You can put  $1000 for a span of thirty years at ten percent interest in the mid-30s. In the end, the amount would have increased to a substantial amount.

Take High Risks

If you are young, then it is time to take high risks. You can invest in large amount of company stocks and leave them for a considerable amount of time. If you are in the middle age, then it is time to stick to the investments in low to moderate organizations.

Planning For Retirement

The topic calls for a plan, where you want the money to last till the last second of your day on this Mother Earth. A product that would have cost $100 in the 1950s would have leapt to $800 in recent times. With increasing prices every day, investing wisely for the future is mandatory.

The first option would be to seek the assistance and advice of a financial advisor to gain information. It is important not to make mistakes, as you have to rely in the future on the invested money. It takes time, knowledge and skill, so it is advisable to seek the best in the business.

Avoid Unnecessary Spending And Save Money

Learn to live simply and on modest means. A simple dollar saved today can turn into a thousand by your retirement. Try to buy items that will increase in value in future (such as gold, land or house) instead of things (such as television sets, expensive mobiles etc).

Enroll In 401 (k) Plan

If your employer is offering the 401K plan, kindly take advantage of it. The plan allows an employee to set aside a percentage in their salary/pay period so that investment can be made in bonds, stocks and mutual funds. If you are working in a multinational company that puts their amount equal to the one paid by an employee, the investment is doubled. Have a discussion with the HR on the contribution factor of the organization, tax rate and devise your budget accordingly.

Investment Plan (Called As Portfolio)

You can ask the financial advisor to develop a portfolio for the saved money. The money can be divided –  one part can be used to buy stocks, another to purchase bonds and the last to invest in commodities such as silver and gold. However, ensure at least, ten percent is kept in cash. If the market changes, you will be saved as the money has not been confined to only one asset.

Play With The Market But, Under The Advise Of A Professional

You can sell silver, when the price is high and buy gold when the cost is less. Playing with the market helps you to gain information and knowledge about the recent trend and prices.

Post 50 Years

Reduce the play on markets such as bonds and shares. Instead, turn your attention on cash and municipal bonds.

If you have started saving from the mid-20s – the amount of saving should be in the range of 10 to 15 percent for the investments.

In the age of mid-30s – the percentage should be 15 to 25 percent. You can be eligible for a bonus, so try to put as much amount in the investment plan.

In the mid-40s – you would have grown wiser than before, but with the family commitments, try to save 35 percent of your income. Get knowledge about exempt-from- taxes-options.


Retirement age is the golden period of life, provided you have made the right and smart decisions on investment. You do not have to attend seminars, meet deadlines, indulge in office politics as you have been relieved from duty. The strength and immunity from your body would have decreased, and the amount of salary discontinued. No doubt, you would be faced with a flurry of medical bills. Relaxation is very much needed at this juncture. Several insurance companies have taken note of the numerous opportunities and have come up with attractive retirement plans for old age.

Before investment (if you are in mid-20s, 30s or 40s), read the prospectus thoroughly and carefully. Do not sign the documents under pressure or on the spur of the moment. Bonds are the preferred option as they can increase your money.  Search on the internet on tax-free and taxable bonds.