Funding Your Retirement

When living paycheck to paycheck, the idea of funding a retirement plan may seem laughable. However, money is not the only way to fund a retirement plan. You can plan to find work that you can do part-time in retirement to help you continue to earn well past the time you retire. In fact, it is suggested that many baby boomers will continue to work long after they have retired. The key is to find something you like to do and that will help you bring in some income.

It's estimated that once your retire, you will need only 75% of your current income. However, this figure is debatable. Many experts feel it is too low and others feel it is too high. It all depends on what you plan to do and what lifestyle you want to support in retirement as to what the actual percentage should be. Take a hard look at what you are currently spending and figure out if you want to maintain this lifestyle or go for something more Bohemian.

If you are currently not making your bills, this can be great motivation to start finding part-time work to help you pay off your debts. Use this opportunity to target something you can keep doing long after you hit retirement age. Try to maintain a good credit history by paying your bills on time. This can come in handy if you hit a financial emergency. While you are working you can take advantage of pay day advances, but once you retire fully you will not have that option.

If, however, you continue to work part-time, you will have a pay stub to prove you are working. In that case, you can continue to have good lines of credit available, including pay day advances. You can still take advantage of senior citizen rates on many activities but also continue to have some income other than social security coming in. Once you stop working all together, you won't qualify for pay day advances or other forms of credit that require a job to quality.

Contributing National Payday Staff Member

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