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How to Plan for Your Retirement Future When Working for a Non-Profit

People working in the non-profit sector often don’t have the salaries or the benefits that employees in the for-profit sector enjoy. That’s why finding a sustainable retirement plan for non-profit employees can be particularly difficult. But even with limited resources, you can still ensure a comfortable future for yourself if you plan carefully and plan ahead. Here are a few tips that you can use to make sure you’ve picked a perfect retirement plan for your needs.

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How to Plan for Your Retirement Future When Working for a Non-Profit

See How Much Money You Have

The first step to planning your future retirement is calculating the amount of money you have. When calculating your budget, make sure to include every income that comes your way. Do you have a garage you are renting? Do you have a side job or do a lot of overtime? Take all your incomes into consideration before you decide how much money you can set aside for a comfortable retirement. Then pick out a planning account that fits into your budget.

Pick the Right Retirement Plan for Your Needs

There are a lot of different retirement plans out there. They differ based on the value of the investment, investment rates, penalties, bonuses and many other factors. Some plans are made for people who work in big companies; others are adjusted for small store owners. Some are designed for people who want early retirement, others require a longer investment. In order to choose the right retirement plan for yourself, make sure to check out different plans and their advantages and disadvantages.

Do they offer any benefits and bonuses? How much flexibility do they offer? Is there a guaranteed income option? These are just some of the things you should inquire about when you are choosing a plan for retirement. Since we know that calculating the benefits and disadvantages of each account can be difficult, we suggest that you use an online calculator to find out how much money you should expect at the end of your investment period.

Hire a Retirement Planner

A retirement planner understands all the nuances of different retirement accounts. Together you can build a comprehensive plan that will help you understand how much money you need to pay every month, how much money you can expect to get when you finally retire, if there are any penalties for early retirement, and other important issues that can affect your investment.

Take Full Advantage of Your Retirement Account

If you have a flexible retirement account, make sure to turn up your contributions to maximum every chance you get. Every time you have a little bit more money, invest it in your retirement. It will pay off in the future. Also, if your retirement account allows you to add catch-up contributions, take advantage of that. Catch-up contributions allow you to add more money to your retirement account if you fulfil certain conditions (for example, if you are over 50 years old.)

Calculate Your Retirement Income

For most people, pensions come from several sources. Calculate how much money you will have from your social security and employer pension. Then see how much you should add to ensure a living pension. In order to make your retirement sustainable, you must follow “the 4% rule” and raise no more than 4% of your investment every year.

So if you have 1 million dollars in your retirement funds, you can safely take 40,000 every year and be sure to never outlive your pension. You can increase this amount to 5% once you pass the age of 70. Is 40,000 dollars a year enough to make a living in your city? It can be difficult to tell.

Estimate Your Retirement Expenses

Do you know how much money you are going to need when you retire? Most people are not sure how much money retired people in their neighbourhood spend on daily life. It goes beyond saying that you will need less money than usual, since your kids will have their own income, and you’ll have your house loan already paid off.

But despite popular belief, some expenses increase when you retire. This particularly goes for medical expenses that tend to increase with age. And if you are planning to spend your retirement travelling the world, then you might find yourself spending a lot more money on a daily basis than you do now.

Finding the right retirement plan can be a complicated process, and non-profits are not an exception. People employed in the non-profit sector are contributing to important goals and they should enjoy a competitive retirement plan. That’s why you should make sure to follow some of these tips and ensure that you get the most out of your retirement plan.

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Page last edited Aug 16, 2019 History

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