When planning for retirement, it is wise to first set aside an emergency fund that can be accessed for urgent eventualities. Your emergency fund can be at least three to six months of your household expenses or even as much as two years. Then, determine one’s cash flow (income and expenses), as well as income-generating assets and expense-generating liabilities.
Find out how much available funds can be set aside for one’s retirement, as well as other financial needs. Set short-, medium-, and long-term goals. A good idea would be to save money, pay off debts, and invest for the future. Then commit to an amount for one’s retirement fund. Also consider the time value of money, such as inflation and the rate of return on savings and investment vis-à-vis your retirement date.