Elderly person's hands on cane

Planning for retirement is a necessity, but a lot of people avoid doing so for one reason or another.

Some people feel like they don’t have the income to spare. Others think they can continue to push it off. Some simply don’t know where to start.

However, while it’s never too late to start, the earlier you start planning for retirement, the better.

A successful retirement plan will help you live comfortably in your later years and prevent you from stressing about money when you’re no longer able to work.

Follow these tips to start planning for retirement today. You’ll thank yourself in the future.

Start Budgeting

This first tip is for those that aren’t able to invest in their retirement due to limited income.

However, even minimum-wage employees can generate a comfortable retirement budget if they invest correctly.

In order to do this, it’s important to develop a sensible budget so that you can cut your costs and free up some money to put into your retirement fund.

Fortunately, there are plenty of online tools and apps that make budgeting easy.

Mint is a great online budgeting tool which can help you track your expenses, create a budget, and manage your money. By tracking your spending, you can identify ways for you to cut back on your spending to save a little bit extra for retirement.

You Need a Budget (YNAB) is another great app which focuses on the budgeting principle that every dollar you earn should have a job. As soon as you get paid, YNAB will help you plan your spending so that you don’t accidentally overspend.

Online Investment Tools

If you don’t have any investing experience, don’t worry. There are a number of online investment tools that can help you easily start planning for retirement.

Betterment is one of the leaders in this category.

Betterment is an automated investment tool which will help you create a strong investment portfolio with generous returns.

This tools is easy to use, has an incredible reputation, has no initial costs, and has very low fees.

Betterment also offers a variety of free resources to help customers become more educated investors.

Customers can also receive free retirement advice based on their current financial situation.

For inexperienced investors, Betterment is hands-down one of the easiest ways to start planning for retirement.

Employer-Sponsored Retirement Plans

If you want to start planning for retirement, be sure to talk to your employer about the employer-sponsored retirement plans that are available to you.

Employer-sponsored retirement plans offer a number of benefits, including:

  • Automatic paycheck deductions
  • Tax breaks
  • Employer-matched contributions

The most common type of employer-sponsored retirement plans is a 401(k) plan.

401(k) plans give you the opportunity to choose the investments that your funds go towards, and you will have full control of your money once you retire.

Employers often offer matching contributions, which means they will contribute a certain amount for every investment you make.

Taking advantage of these plans is a great way to save money quickly and increase your retirement fund via employer contributions.

By utilizing these tips, you can start planning for retirement today to ensure that you can live comfortably after you leave the workforce.