One of the most difficult parts of preparing a retirement plan involves thinking about life as a 60-something-year-old.

Many people get overwhelmed by the thought of saving for an unforeseen future and often end up saving nothing at all. Fortunately, preparing a retirement plan is not all that burdensome, but you will surely require a road map — one that should evolve with time. Always begin with the thought about how your life might be after retirement. Sit down with a memo pad and a pen, and note down all your retirement goals. If you are not sure how to begin, don’t worry! We are here to assist you.

Decide a budget

Your current budget takes all your present-day income as well as expenses into account. While you need to have a rough estimate as to what you will have to save every month based on your retirement plans, you must also ensure that you are saving that money. Your retirement savings should be put as a line item in your monthly budget, just as your rent, food, and grocery costs, so that you can set a fixed amount aside every month.

Retire debt-free

Every individual should have one goal—that is—to retire debt-free. It should include everything from your credit card debt — especially the card with high-interest rewards— mortgage and car loans, and other big loans. The reason behind this is simple: you would not want to step into your non-earning years with any kind of debt.

Consider your retirement needs.

Before retiring, you must decide how you wish to do it. Consider how you want to live and where, whether you will have a post-retirement job, and how your expenses might be like. Also, try creating a timeline to figure out when your various investment schemes will mature. It will enable you to manage cash flow and obtain an idea about how much you have to save before retirement.

Gather information about the employer’s pension plan that you are entitled to

If your employer offers a conventional pension plan, make sure you check to verify if the plan covers you and try to understand how it works. You may also ask your employer for an individual benefit statement to evaluate its worth. Before switching jobs, learn what might happen to your pension benefits.

Start practicing retirement spending.

Start meticulously tracking your expenditure to offer yourself a clear picture of your estimated income requirements during the first year of your retirement. Make financial adjustments according to the estimates — curb all kinds of unnecessary expenses now to enjoy good retirement life.

Retired life can be a delightful time when you can finally experience some of the things you have been planning since you were young. But you must work hard now to reap the benefits later.