by K Vaze

Created on: March 20, 2009   Last Updated: March 23, 2009

Did you ever think that we all are expected to spend almost one third of our lives in retirement? That's a significant number of years. Everybody has their own picture of retirement, some people will think of it as another opportunity to do something different, new and exciting. While some just would like to relax and spend their days in an exotic destination they haven't explored yet.

Either way to live a financially secure retirement it never hurts to start thinking and planning as soon as you can. Know your destination and your directions to reach it before you set out for your journey. It will make a much easier and less bumpy ride. A little planning will go long way in creating your dream retirement.

Think years ahead in future

No matter what your age is right now, start thinking about, at what age you would like to retire. Make assumptions of what your expenses could be, including your health care costs, daily expenses and if you plan to travel, add those costs too. Off course nothing is permanent and you will have to make changes along the way but it will give you a start and some realistic idea of your goals. On-line tools will help you do just that. Finance experts agree that a person will need around 85 to 90% of their pre retirement income to meet their retirement needs, so plan accordingly.

Involve everybody in your family

Talk to your spouse about their view of the retired life. Sit down with her/him and make a list of your shared views and your differences, think about how you would like to spend your time together after retirement. Will you consider moving to some other place? Or living in a retirement community? Also as a parent you might want to consider all the costs related to health care, education, and college funds for your kids. If your kids are old enough, teach them about savings.

Put everything into writing

The psychology experts say that writing down something gets you closer to making it a reality. So write down everything. Take all the expenses into account and don't forget to write down important points and goals. Prioritize your expenses, whether to pay the car premiums first or buying the big screen TV. Once you and your family gets used to this, all of you will automatically know and accept where to cut the expenses if you are on a budget.

Be prepared for the unexpected

If you are well prepared you will be in a better position to deal with the situation than those who did not plan for whatever life throws their way. Hoping for the Best

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