Paralyzed In Planning For Retirement? 5 Small Steps You Can Take

Planning for retirement is a challenge for most Americans. As it grows nearer, you may feel overwhelmed at the thought of trying to figure out how much you have available through various methods, how much you need to save, and how to eventually tap into it. This anxiety often leads people into paralysis and inaction when it comes to retirement planning. But you can beat this tendency by taking small, manageable steps.

Here are a few things you can do right now to make forward progress. 

1. Meet With a Planner. Meeting with a financial planner who specializes in retirement serves two purposes. First, it helps you get organized and forces you to put together some numbers. Second, it gets you some professional assistance with this admittedly difficult task. A financial planner has all the tools you may not know where to get — calculators, forecasting, investment choices, and a network of other professionals. 

2. Increase Your Contributions. Do you already have access to an IRA or an employer-sponsored account? Take a positive step today by increasing your contribution by a small amount. If you have a percentage of salary diverted to your employer plan, for instance, increase it by 1%. Do the same each year (or more often) until you have maximized contributions. Do the same on your own with a personal retirement account. 

3. Check on Social Security. Do you know how much you can expect to receive from Social Security when you retire? What about at different retirement ages? This information is often not at hand but is very important to know. You should also review your account for accuracy. Social Security information is available online or through your local office. A financial planner can help you locate as well. 

4. Learn Some Financial Terms. If you're held back from planning because you don't know much about finances, investing, or retirement options (such as annuities), take some time to learn more about them. The more you understand the basics of your money and choices, the more empowered you will feel. And when you feel in control, you're motivated to take positive actions. 

5. Add Up Your Net Worth. Many people feel that they are not in a good position financially but don't really know the whole story. A simple calculation, though, can help you find out your real financial picture. Add up your assets (cash, accounts, home, car, etc) and subtract what you owe (loans, mortgage, credit cards, etc). You may find that the result — your net worth — is larger than expected. If it isn't, watch it improve in small steps as you reduce debts or increase savings. 

If you take a moment to do any of these easy tasks right now, you will feel more accomplished and do something positive about your retirement. Want more ideas of manageable steps to take? Speak with a retirement planning professional today to learn more.