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Important Retirement Considerations

The retirement age for much of the world is between 60 and 65 years. Life expectancy remains, however, for much of the industrialized world well into the 70's and in many regions well beyond 80. Your individual retirement age will likely depend upon the kind of job that you have during your career and also your health.


But for many people retirement will mean that they have as many as 20 or more years to sustain themselves on their savings or other income sources and will need to rely upon whatever resources they have to live comfortably during this period of time. Here are some things to consider when planning for retirement to ensure that you don't run out of money too early.


Evaluate Retirement Goals
Most people have a mindset about how they would like to spend their retirement years. And like most people, you should set some retirement goals, which will shape your costs and incomes and influence your retirement strategy. For example, if you would like to stay in the comfort of your current home in retirement your plan would differ from someone who wants to live abroad and travel the world. The expenses for both goals will differ, obviously. For Federal and Postal employees who are eligible for retirement plans like the thrift savings plan and the CSRS Annuity, you should be aware that there are other investment options available as well options for controlling your post retirement cost of living.


Pay off Any Outstanding Debt
To retire with financial peace of mind you should concentrate on paying off any major debt you may have before you retire. You should predominantly debt free or close to it as you transition into retirement. This way, it is easier for you to enjoy your retirement income without the concerns of these costs hanging over your head and with the knowledge that you have more financial breathing room should you face an unexpected financial shock. Any pension you might be eligible for along with retirement accounts like the Thrift Savings Plan ( will help you in your retirement years, but it is the control over your expenses that will make these benefits last.


Create Your Retirement Budget
If you haven't already started retirement planning, it is never too early to begin. Evaluate your current expenses such as food, utilities, taxes, car and home maintenance, etc. as well as the average of your entertainment and travel budget. Be honest with yourself. Knowledge, here, will help you gain an understanding of how much money you will need in retirement to cover the expenses that your current lifestyle demands. It is much smarter for retirees to have an understanding about these expenses and how they will be covered. For Federal and Postal employees who are eligible for a pension and the thrift savings plan it is wise to run an income 'Gap Analysis' to understand the difference between what your pension and/or Federal annuity will pay you and the income that is needed to match your expenses.


Consult with a Financial Planner that is also a FERS, CSRS and FEGLI expert.
Before you retire and before you make any decisions about what to do with your TSP and other retirement benefits it is highly recommended that you consult with a knowledgeable financial professional who understands your benefits. The services provided by the most knowledgeable of these professionals will help you determine the best retirement plan for your individual needs. Before you choose any kind of financial plan like pension or thrift savings plan, understand its pros and cons thoroughly. Remember! It is never too late to make improvements in your retirement plan and it is never too early to begin.

Even though we all love working at Retailers Forum Magazine, the nation's leading source for wholesale merchandise, we do think of our retirements. This article is informative and encourages readers to consider all aspects of their future seriously.