The Stages of Retirement Saving

Saving for retirement is important if you want to have a comfortable lifestyle in your golden years and requires a certain amount of deliberate planning.

There are several takes on the stages of retirement saving, but they all boil down to the same basic principles.

Accumulation

This is the stage where you are putting money from income into a retirement account. During this time, you’ll want to keep your eyes on the horizon and remember that your ability to live comfortably during retirement depends on how much you accumulate during this stage.

Planning

During the planning stage, you will be conducting a review and forecasting things like your anticipated living and lifestyle expenses, tax obligations, and other areas of your finances. Here you will gain some insight into how much you can expect to spend in any given month and will be able to budget accordingly.

Distribution

This final stage is when your earned income stops and you are finally able to reap the rewards of your careful planning. During this time you will want to budget wisely and make sure you are living within your means, as the primary purpose is to ensure your income stream outlives you.

With these stages in your mind, you should be able to live comfortably and happy during your retirement years.

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