Planning for your Retirement should start as early as possible. It can take decades to build up a healthy nest egg. Saving for retirement is crucial because we can no longer rely on Social Security.With the rising costs of everything from gas to food to rent, it has never been more important than now to focus on your retirement. Here are several things you can do to prepare for retirement.

Save

Save now. Save more. Then save again. You may need half a million dollars to retire comfortably. This sounds like a daunting task but just put away a certain percentage of every check into your retirement account. If your company matches your 401k contribution take advantage of this. Even if they only do a partial match, take it, it is free money.

Mortgage

Pay down your Mortgage if you have one. If you’re renting, get a mortgage as soon as you’re able to. Go for the 15 year option if you can afford the payments. You don’t want to have a mortgage payment when you’re in your 70’s. Only refinance if you can shave more than 1% off your interest rate. By refinancing, you’re establishing a new 30 year loan which means you’ll need to work for another 30 years.

Social Security

Sweeping changes are under way and further changes will need to take place in order to keep the program running. This means the retirement age will continue to get pushed back. Don’t rely on Social Security because by the time you retire it may not even be there anymore. Use it as a backup plan only.

Work

You may need to keep working past retirement age. If you have a job continue to work there as long as your health allows you to. If you end up retiring and need to find a job in the future you may not be able to find one. It’s hard enough for recent college graduates to land a job, now imagine a senior citizen.

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