How to Plan for Retirement At Every Stage Of Your Life

Financially planning for retirement is a lifetime, ever-evolving process.

Your retirement plan must continue to evolve with you as you move forward through different stages of your life.

Since there is no one-size-fits-all approach to the best retirement savings plan, there are some workable steps you can take at any point in your life to better position yourself for a prosperous future.

Thinking about your best retirement savings plan is the first step in retirement planning.

Then, you must consider the several retirement accounts that can assist you in generating revenues for your future.

To allow that money to grow, you must invest it as you save it.

There are several actions that you can take during the course of your career to create a successful and stress-free retirement plan.

This includes knowing investment basics and developing excellent financial habits to arranging for wealth transfer as a late-stage retiree.

Begin by visualizing the type of best retirement savings plan you desire.

Will you work part-time, volunteer, or go on vacation? Then, create a realistic picture of the financial resources you’ll need. See if your current ones will be enough to carry out your strategy.

If you discover a gap, consider how to gain the additional assets you require or change your vision to align with your resources.

🤔 Why Is It Important to Plan for Retirement?

There are literally thousands of elements that can affect your capacity to maintain financial stability when it comes to retirement planning, be it for the retirement plans for dummies or the best retirement plan for the self-employed.

1) Getting your retirement planning on track today is a critical step toward total financial well-being. This can be beneficial both for your physical and mental health.

2) The more control you have over your revenue streams after retirement, the more likely you are to be able to minimize your taxes.

3) Another factor to consider for financial planning for retirement is to create better financial decisions.

4) Retirement planning is vital because it can prevent you from going broke in your golden years.

5) Even with Social Security, you ought to have roughly 60% of the money you’ll need to retire comfortably.

Your plan can help us to analyze the ROI you require on your investments, the risk level you should handle, and the amount of income you can responsibly extract from your portfolio.

It takes foresight to achieve your best retirement savings plan. The earlier than expected you begin planning for retirement, the better.

💰 How Much Should You Save for Retirement?

Answering the question “How much do I need to retire?” is an essential aspect of financial planning for retirement.

The answer differs from person to person, and it is mostly determined by your current income and desired retirement lifestyle.

According to most experts, your retirement income should be around 80% of your pre-retirement earnings.

Other sources of income, such as Social Security, pensions, and part-time work, as well as considerations like your health and desired lifestyle, can be used to change the amount.

If you want to travel significantly during your retirement, you may require more.

Not everybody can begin saving at the age of 25 or continuously set aside 15% of their earnings for retirement. To compensate for the lack of time and compounding, if you start later in life or save a little less, you may need to work longer, decrease more costs, or put more of your funds into retirement.

However, there is no one-size-fits-all rule for calculating how much money you should put aside for retirement.

It will most likely be determined by your future circumstances, both current and unforeseen, such as:

• What’s your age? You’ll need to save more if you get a late start.
• Whether or not your company will match your contributions. Your employer’s match is included in the 10% to 20% range. If your employer matches your donations dollar for dollar, you could be able to save money.
• When it comes to investing, how aggressive are you? Taking more risks normally results in higher returns, but your losses will be more severe if the stock market crashes.
• How long do you intend to live in retirement? It’s difficult to know how much longer you’ll be able to work or live. You’ll want to save more if you plan to retire early or if members of your family live into their mid-90s.

💵 How to Start Saving for Retirement

Since it’s always a good idea to start saving early – even $25 a month in your 20s can assist – it’s also fine to put money down for more urgent needs first. Then, tackle financial planning for retirement in your late 30s and early 40s.

You would not want to wait much longer than that, either, because you’ll need time to deposit money into a retirement account and see it improve.

Here are some tips to start planning:

1) Create a Budget

This is your most recent budget, which includes all of your current income and expenses. While you should have an estimate of how much money you’ll have to save each month, you must also ensure that you have that income. It’s a great way of making retirement savings a line item in your budget, just like food and housing, so you can start saving every month.

2) Set Automatic Transfers

This is a method that you may link between your checking account and your retirement account to ensure that you do not even forget to save.

Make it such that cash set aside for the future is transferred from your bank account to your investments on the same day every month.

There’s no reasonable chance of you wasting that money by doing it this way.

3) Create an Emergency Account

Having an actual emergency account — normally with three to six months’ worth of pay put up — will allow you to meet any unforeseen expenses without jeopardizing your retirement plans.

4) Pay Down Debt

Everyone should strive to be debt-free by the age of 65. Credit card debt, particularly high-interest reward cards, vehicle, and home loans, as well as any student and other large loans, fall into this category.

The rationale is simple: you would not want to be in debt throughout your retirement years.

💡 What Investment Accounts Should You Consider?

Of course, the most important aspect of retirement planning is setting aside a set amount of money each month. However, you will not be able to achieve your goal until you invest that money.

One motivation to invest is to benefit from the compounding effect, which occurs when gains build on top of previous gains.

Compound growth can significantly improve returns over time. Your investments will multiply year after year, regardless of the account you select. (Losses can compound as well, although markets have risen steadily over time.)

However, depending on the account, the amount you can save and the amount of tax varies.

High-yield savings account

The highest-yielding savings accounts currently pay less than 1% on the money they save, and they’ve been moving down in line with the Federal Reserve’s policy of keeping its benchmark rate low for longer.

This savings account is risk-free compared to stocks or bonds.

In a more typical investment savings vehicle, your money should grow faster over time.

Traditional Individual Retirement Account (Traditional IRA)

Individual retirement accounts, or IRAs, are a tax-advantaged way for people to save for retirement.

IRAs can be of many sorts and have differing tax responsibilities depending on an individual’s work situation. It’s a personal account that you create and contribute to yourself, as the name says.

You will have to pay tax on the amount you withdraw from the account, but it will be calculated based on your tax rate for the current year.

That’s a good thing because you’ll be in a lower tax rate in retirement because you’ll be earning less money, thus the tax hit on your withdrawals will be minimal.

IRA contribution limitations and income limits are subject to change on a yearly basis.

You can currently invest $6,000 per year, but those 50 and older can save up to $7,000 per year through catch-up contributions.

You must begin withdrawing funds from your IRA once you reach the age of 72.

Before withdrawing, consult an accountant or financial counselor to determine the minimum required distribution depending on the size of your account and your expected life expectancy.

You could face a significant tax penalty if you do not withdraw the required amount.

Roth IRA

In two important respects, Roth IRAs differ from standard IRAs.

The first is that contributions are made after taxes, so you don’t get a tax break when you invest. On the plus side, you won’t owe the IRS anything when it’s time to withdraw.

As a result, all of your contributions will be tax-free in the long run. You can only contribute $6,000 each year, or $7,000 if you’re over 50, just like an IRA.

There is one caveat: if you make more than $122,000 per year or $193,000 per year with your spouse, your annual contribution room will be restricted.

You cannot contribute to this account if you earn more than $137,000 as an individual or $203,000 as a couple.

Simple IRA

401(k) plans, which may be costly to set up and manage, are not offered by many small businesses. They can offer a SIMPLE IRA, or Savings Incentive Match Plans for Employees, to their employees.

It functions similarly to a 401(k), in that both employees and employees can contribute money, lowering each party’s taxable income by the amount invested.

Employee contribution limits are reduced in 2020, at $13,500 for those under 50 and $16,000 for those over 50, and employers can only contribute up to 3% of their employees’ yearly pay.

Investments can grow tax-deferred until you reach the age when you must remove them.

Traditional 401(k) plans

A 401(k) is a type of retirement account that a corporation provides to its employees.

Contributions to this account are made before taxes, so they can grow tax-free, just like a typical IRA.

When you withdraw those funds, you’ll have to pay taxes, but if you’re in a lower tax rate in retirement than you were throughout your working years, the tax blow should be minimal.

The 401(k) plan has a number of advantages (k). The first is that the contribution maximum is substantially higher than an IRA’s. In 2020, you can contribute $19,500 (it rises a little each year) or $26,000 if you’re over 50.

Employers may also match contributions, albeit the percentage of contributions matched and the amount matched per employee dollar varies. In 2019, the average employee contribution rate for Vanguard Group-managed retirement plans was 7.0 percent, and the average employer contribution rate was 3.7 percent.

In 2020, the total employer and employee payments combined cannot exceed $57,000, or 100% of your salary.

A lifetime contribution cap of $285,000 is also in place. Another important advantage is that money is automatically deducted from your paycheck and deposited into your 401(k). So, you don’t have to worry about transferring those funds manually.

For the time being, you can withdraw up to $100,000 from a 401(k) without paying the 10% penalty if you or your spouse has lost a job or has been negatively impacted by Covid-19.

Roth 401(k)

This is an after-tax account provided by your employer.

Contributions are not tax-deductible, but you won’t be faced with a tax bill when it’s time to withdraw, unlike a Roth IRA.

Employees and employers can both contribute, much like in a typical 401(k), but there are limitations.

Employees cannot put in more than $19,500 in 2020, or $26,000 for those 50 and older, while combined employee and employer payments cannot exceed $57,000 or 100% of that employee’s compensation in 2020, whichever is lower.

You can contribute to both a conventional 401(k) and a Roth 401(k) with pre-tax earnings, but you can’t invest more than the maximum contribution amount.

This account is suitable for people who believe they will be in a high tax band in retirement and will have to pay Uncle Sam a possibly large tax bill.

There are ways to transfer money from one of the aforementioned accounts to another — for example, from a traditional IRA to a 401(k) and vice versa — but it’s best to seek advice from a financial professional first.

Simplified Employee Pension (SEP) Plans

The SEP plan may be the ideal option for you if you are a self-employed individual trying to save for retirement.

This account, which could only be opened by a business owner with one or more employees or anyone who earns freelance income, works in the same way as a traditional IRA in that pre-tax contributions reduces your taxable income (or the company’s, depending on who is contributing) and money grows tax-deferred until you withdraw it in retirement.

To a maximum of $57,000 each year, you can contribute up to 25% of your wage.

You can also contribute to an employee’s account, but unlike a 401(k), which is more expensive to set up, the employee cannot contribute to his or her own SEP.

🔥 Planning for Retirement at Every Age

A healthy financial habit is to get started early (or right now) and make monthly contributions to your retirement savings, as well as to check on your progress and make necessary modifications. So keep reading to discover how much you should have set aside for retirement at each age.

👱 Saving for Retirement in Your 20s

A dollar saved in your twenties is worth more than one saved in your thirties or forties.

The issue is that you just don’t have that much money to invest when you’re living on an entry-level job, especially if you have student loan debt.

Prioritize Your 401(k) Match

Contribute enough to obtain the full match if your workplace offers a 401(k), 403(b), or any other retirement account with matching contributions — unless you won’t be able to pay your bills as a result. Annual gains on the stock market are typically around 8%.

If your employer matches your contribution 50 percent, you’re getting a 50 percent return on your money before it’s even invested. That is unquestionably free money that no investor would ever refuse.

Pay off High-Interest Debt

After you’ve found the right job, concentrate on paying off any high-interest loans.

The average yearly stock market gains of 8% pale in comparison to the average interest rate of 16 percent for persons with credit card debt.

You’d anticipate a $100 investment to yield $8 in a regular year. Isn’t it time you put that $100 toward your debt? You will undoubtedly save $16.

Take More Risks

We’re not advising you to invest in high-risk assets like bitcoin or the penny stock your relative won’t stop talking about.

However, before you begin investing, you’ll most likely be asked a series of questions to determine your risk tolerance.

Take on as much risk as your mind can manage.

Build Your Emergency Fund

A three-month to six-month emergency fund is a terrific method to protect your retirement savings.

You won’t have to go into your increasing savings account if you come into financial difficulties. However, this is not money in which you should have put your money.

Put it in a high-yield savings account, a money market account, or a certificate of deposit to earn more money.

Tame Lifestyle Inflation

We would like you to take advantage of those well-deserved raises, but we also want you to stay on top of lifestyle inflation.

Don’t splurge your entire paycheck on a new car or a new house. Dedicate to investing a portion of each increase and then using the remainder as you see fit.

💁 Saving for Retirement in Your 30s

If you’re in your 30s and just starting to save, the situation isn’t that bad.

You still have approximately three decades till retirement, but it’s critical that you don’t put it off any longer.

However, if you’ve added children and property to the mix, saving may be a strain.

Invest in an IRA

If you’ve only been investing in your 401(k) so far, opening a Roth IRA is a terrific way to augment your funds. Because you’ll receive tax-free money in retirement, a Roth IRA is a good investment.

You can invest up to $6,000 in 2020 and 2021, or $7,000 if you’re over 50.

The deadline to contribute isn’t until tax day each year, so you have until April 15, 2021 to make 2020 donations.

You can contribute to a traditional IRA if you earn too much to fund a Roth IRA or if you want the tax break now (even if it means paying taxes in retirement).

A 401(k) has a limited number of investment alternatives.

An IRA, on the other hand, allows you to invest in whatever stocks, bonds, mutual funds, or exchange-traded funds (ETFs) that you like.

Avoid Mixing Retirement Money With Other Savings

You can borrow money from your 401(k) to buy a house.

The Roth IRA guidelines allow you to use your investment money to pay for a first-time home or college tuition.

You can also take your contributions out whenever you wish. But hold your horses. That isn’t to say you should.

The obvious disadvantage is that you are withdrawing funds from the market before they have had time to compound.

However, there is another disadvantage. It’s challenging to determine whether you’re on track to meet your retirement goals if your Roth IRA doubles as a college bank account or lump sum payment fund.

Start a 529 Plan While Your Kids Are Young

It is more important to save for your own future than for your children’s college education.

If your retirement finances are in good shape, however, setting up a 529 plan to save for your children’s school is a wise decision.

You’ll not only keep the money separate from your nest egg, but you’ll also prevent having to dip into your savings later for their requirements if you prepare ahead of time for their schooling.

Keep Investing When the Stock Market Crashes

Every ten years or so, the stock market experiences a severe catastrophe similar to the COVID-19 crash in March 2020.

When you’re in your 30s, however, it’s often the first time you’ve put enough money into something to see your net worth drop. Do not succumb to panic. There will be no withdrawals allowed. Even if you’re afraid, stick to dollar-cost averaging and continue to invest as usual.

🧔 Saving for Retirement in Your 40s

If you started saving when you were in your 40s, you may already have a sizable savings account.

However, if you’re falling behind on your retirement plans, now is the time to get moving. You still have time to save, but you’ve missed out on the compounding years.

Continue Taking Enough Risk

You may believe that in your 40s, you can afford to take less risk with your investments, but you still have two decades till retirement.

Your money has plenty of time to grow – and it needs it.

Even if it’s more unsettling than ever to see the stock market plummet, keep a majority of your money in stocks.

Put Your Retirement Above Your Kids’ College Fund

Only if you’re on pace to retire can you afford to pay for your children’s college.

Early on, talk to your children about what you can afford and their choices for avoiding enormous student loan debt, such as attending a less expensive school, receiving financial aid, and working while attending classes. Your retirement funding options are far less.

Keep Your Mortgage

Although mortgage rates fluctuate from week to week, they are likely to remain low for the majority of 2021.

Investing has a considerably higher potential return, therefore you should put more money into your retirement accounts.

Consider refinancing your mortgage if you haven’t already done so to receive the best rate.

Invest Even More

If you can afford it, this is a good moment to invest even more. Maintain your full 401(k) match with your company.

Aside from that, make sure you contribute the maximum amount to your IRA.

Consider increasing your 401(k) contributions if you have more funds available (k). If you want more flexibility in how you invest, you may open a taxable brokerage account.

Meet With a Financial Adviser

When you’re in your 40s, you’re approximately halfway through your working years. It’s a good idea to consult with a financial advisor right now.

A financial consultant is usually less expensive if you can’t afford one.

Rather than offering investment guidance, they’ll concentrate on basics like budgeting and debt repayment.

🧓🏽 Saving for Retirement in Your 50s

Those retirement years that once felt like a lifetime away are getting closer as you approach your 50s. Perhaps something excites you, or perhaps it makes you feel uneasy.

Whether you want to work indefinitely or want to retire as soon as possible, now is the time to start planning for when you want to retire and what you want your retirement to look like.

Review Your Asset Allocation

You may want to start putting more money into safe assets like bonds or CDs after you reach your fifties.

A stock market catastrophe gives your money less time to recover. But proceed with caution.

You should continue to invest in stocks in order to obtain returns that will allow your money to expand. Bonds and CDs are unlikely to yield enough to keep up with inflation if interest rates remain low through 2023.

Take Advantage of Catch-up Contributions

Catch-up contributions can help you catch up on your retirement savings if you’ve fallen behind. You can make the following contributions in 2020 and 2021:

– Once you reach the age of 50, contribute $1,000 to a Roth or regular IRA (or a combination of the two)

– When you turn 50, add $6,500 to your 401(k)

– Once you reach the age of 55, you can add $1,000 to your health savings account (HSA). 

Work More if You’re Behind

The time you have to make up for lost retirement funds is running out. So, if you’re behind on your payments, think about how you can supplement your income and add to your savings account.

If you’re looking for a way to supplement your income, you could start a side hustle, freelance work, or work overtime.

Many people are obliged to retire earlier than they intended, even if they want to work for another decade or two.

It’s critical that you make as much money as possible while you still have the opportunity.

Pay off Your Remaining Debt

Now is a good time to spend additional money to pay down lower-interest debt, such as your mortgage, because your 50s is typically when you start transitioning away from high-growth mode and towards safer investments. If you can enjoy your retirement debt-free, it will be much more enjoyable.

👵 Saving for Retirement in Your 60s

You’ve made it! Congratulations! After working for decades to get here, hopefully, your retirement aspirations are now looking feasible.

However, you must still make some major choices. In the year 2021, someone in their 60s may comfortably retire for another two to three decades.

Now it’s up to you to stretch that hard-earned cash as far as it can go.

Make a Retirement Budget

Plan your retirement budget at least a couple of years ahead of time.

Financial planners advise replacing 70% to 80% of pre-retirement income.

Seniors might get money from a variety of places:

• Benefits from Social Security. For the average senior, monthly benefits replace around 40% of pre-retirement income.
• Withdrawals from retirement accounts. Money is withdrawn from retirement funds such as a 401(k) or an IRA.
• Pensions with a defined benefit. These are becoming increasingly rare in the private sector, although they are still rather frequent among persons who have retired from public service.
• Annuities. An annuity may make sense if you’re concerned about outliving your funds, even if it’s contentious in the personal finance industry.
• Income from other sources. Some retirees augment their retirement and Social Security income by investing in real estate or buying dividend stocks, for example.
• Working part-time is an option. A part-time job can help you put off taking money out of your retirement savings account, allowing your money to grow.

It’s possible that some of your expenses will disappear. You won’t have to pay payroll taxes or make retirement contributions, and your mortgage may be paid off. However, you should avoid making any extreme budget cuts.

Even once you’re eligible for Medicare, healthcare expenditures suck up a large portion of senior income, and they frequently rise considerably faster than inflation.

Develop Your Social Security Strategy

You can begin receiving Social Security benefits at the age of 62 or wait until you’re 70 years old.

However, the sooner you begin receiving benefits, the cheaper your monthly payments will be.

If you don’t have enough money set aside for retirement, it’s usually advisable to put it off as long as possible.

Taking your benefit when you’re 70 instead of 62 will result in a 76 percent increase in your monthly check. If you have serious health issues, though, receiving benefits sooner may be advantageous.

Figure Out How Much You Can Afford to Withdraw

You can estimate how much you’ll be able to comfortably withdraw from your retirement funds once you’ve set your retirement budget and anticipated how much Social Security you’ll get.

The 4-percent rule is a popular retirement planning guideline: In the first year, you withdraw no more than 4% of your retirement assets, then adjust for inflation.

If you have a Roth IRA, you can let your money grow tax-free for as long as you wish.

If you have a 401(k) or a traditional IRA, however, you must begin taking required minimum distributions, or RMDs, at the age of 72. These are required distributions depending on your expected lifespan.

Keep Investing While You’re Working

While you’re still working, don’t take money out of your retirement savings.

You won’t have to pay an early withdrawal penalty once you’re over the age of 59, but you’ll want to keep your retirement money as safe as possible.

Rather, continue to put money into your retirement plans while you’re still working.

However, proceed with caution. If you’ll need money in the next five years or so, stay out of the stock market, as your money won’t have much time to recover from a stock market crash when you’re in your 60s.

🤩 Planning to Retire Early? Here’s How

Early retirement necessitates preparation and discipline.

Begin by figuring out your monthly costs and how much you’ll need to retire.

Reduce your present budget’s spending so that you have more money to save and invest.

Work with a knowledgeable financial advisor before and during retirement to help you manage your finances.

1) Make a rough estimate of your retirement costs.

If you wish to retire early, the first step is to figure out how much money you’ll need each month once you’ve retired.

Begin by calculating your outgoings for items you can’t avoid, such as accommodation, food, clothing, utilities, transportation, insurance, and healthcare.

2) Determine the amount of money you’ll need to retire.

The next step is to figure out how much money you need to save now that you have a rough estimate of your monthly spending. This can be estimated in a variety of ways.

One strategy is to have enough money to cover one year’s worth of costs plus 25 to 30 times your projected annual expenses.

3) Make a change to your current spending plan.

This is where you need to be disciplined.

To make up that $1 million difference, you’ll have to work really hard—especially if you want to accomplish it quickly.

Many people who wish to retire early live on half of their salary (or less). The remaining funds are utilized to pay off debt and build a savings account.

4) Maximize Your Retirement Funds

Regardless of when you expect to retire, it’s a good idea to start saving early and often. Individual retirement accounts  (IRAs) and 401(k)s are excellent options for this.

5) Seek the advice of a financial advisor.

Working with a financial advisor on a regular basis is a good idea unless you’re a rock star investor.

An advisor can assist you in developing an investment strategy to help you achieve your retirement objectives. They can also show you how much money you’ll need to put aside each month to attain your goal in a set amount of time.

Many people wish to retire early, but few have the necessary financial resources, planning skills, or discipline.

To begin, calculate your retirement expenses, set your desired nest egg, and then save and invest to achieve your goals.

😞 Common Retirement Planning Regrets

One of the best moments of one’s life should be retirement.

Sadly, many retirees are left with regrets that limit their capacity to enjoy their golden years.

Researchers surveyed 500 retirees to discover how their financial realities compared to their hopes for their golden years. The outcome was a little depressing.

Many respondents claim they can’t afford luxuries like travel and leisure, with 60% saying they don’t travel as much as they’d like and 47% saying they have a smaller social life than they expected.

Other data, on the other hand, are significantly more worrisome.

Approximately one-third of retirees, or 32 percent, are concerned that they may outlive their savings.

When questioned about their single biggest worry now that they’re no longer working, a third of retirees, 32 percent, stated it was a lack of income.

The great news is that nearly half of those polled in Coventry, 48 percent, felt their retirement is fulfilling up to its expectations.

1) Their savings

Approximately a quarter of those polled (24%) indicated their single biggest regret about retirement was the amount of money they were able to preserve.

Experts recommend saving at least 10 times your yearly wage for retirement by the age of 67, but this goal will vary depending on your circumstances.

2) The age at which they began saving

Experts recommend putting at least 15% of your monthly income into a 401(k) or IRA as soon as you start working, and more if possible.

If that isn’t possible, simply save as much as you can as soon as possible.

Decades of compound interest capitalization can have a significant impact on the end outcome.

3) Their retirement age

The age at which pensioners retired came in third on the list of regrets, with 22% stating they should have done so at a younger age. That’s not unexpected, given that delaying retirement might significantly reduce the amount of money you’ll need to spend.

4) When they first started planning

For 13% of study respondents, the age at which they began planning was their biggest regret.

Knowing what you want to do with your retirement, even if you’re still young, is a critical component of saving for it.

5) The location in which they choose to reside

Many of the survey respondents are dissatisfied with where they have chosen to live. Over 55% of respondents claimed they are dissatisfied with their current residences, citing concerns such as the weather and lack of proximity to relatives. The single biggest retirement regret for 11% of respondents was choosing the incorrect area to reside.

6) The types of savings vehicles they used

The largest regret for a small percentage of poll respondents, 7%, was utilizing the wrong accounts.

Investing in a 401(k), an Individual Retirement Account (IRA), or an individual brokerage account are all wise choices. However, there are several key differences in how they work.

📌 The Bottom Line

This element is crucial, whether you’re still working or have already retired: you must prioritize yourself.

That means you should prioritize your retirement savings goals before bailing out family members or funding your children’s and grandchildren’s college educations.

After all, if you don’t have any savings when you retire, no one else will come to your rescue.

❓ You Might Ask

1) How can I create a retirement plan?

You can start creating a retirement plan by first listing down your goals and needs. You can do this by filling in the statements below:

I plan to retire at ____ years old. I’ll need about $_____ per month to pay for my expenses. I need my retirement money to last me ____ years.

2) What percentage of my income should I plan for retirement?

Experts say that it is ideal to save roughly 15% of your annual income if you are starting in your late 20s. The earlier you start saving, the better.

3) How can I retire with no money?

You can do this by getting a part-time job to cover your basic necessities and renting out a part of your home for extra passive income.