Retirement is an important phase of your life that requires you to be prepared, especially if you have a family to look after. Most experts recommend opting for a retirement plan that supports you and your loved ones financially in your golden years. A good plan can help you maintain or even upscale your living standards. Below, we’ve listed four popular retirement plans and tips on having a financially secured retirement.

Popular retirement plans

401(k)
This is one of the oldest and most popular retirement plans. As per the 401(k), a fixed percentage of the employee’s monthly paycheck goes into a separate investment account, which isn’t taxed at that time. The amount in the investment account keeps growing month after month, and the employee can withdraw the sum after reaching retirement age. However, these savings are taxed upon withdrawal.

Roth IRA
Roth IRA is another popular employer-sponsored plan usually taken alongside the 401(k). A critical difference between the 401(k) and Roth IRA lies in the timing of the tax deduction of the contribution. In the case of Roth IRA, the monthly contributions to the investment account are taxed every month rather than upon withdrawal during retirement. The benefit is that the present income tax rates are lower than what the rates would be at the time of retirement.

Pension
The employer has a pool of funds in which employees make regular contributions. These funds are managed professionally, and the employee has nothing to do. To qualify for the pension, the employee must only stay on the job for a minimum duration. Pension plans have become rare, and one might not find these as readily available in private companies.

Real estate
Real estate is an excellent last-minute solution for those in their mid-50s who aren’t satisfied with their current retirement plan. One has to buy a decent property and buy it with a lump sum so that they aren’t stuck with debt and have some money aside for paying off any repairs and taxes. Yes, managing a property on such short notice might demand a bit of work, but the benefits outweigh the risks.

How to have a financially secure retirement

Make hay while the sun shines
The sooner you start looking, the more time you have to decide upon one retirement plan that works best for you. A good time to think about choosing a retirement plan is when you’re well settled and secured in your job. Once you have a stable income and your savings account is up and running, start making safe predictions about the future and choose a retirement plan accordingly.

Diversify your investments
Supplemental income from investments always helps during retirement. Property investments, fixed deposits, and even equities, together with a retirement plan, can help you upscale your lifestyle. Your portfolio must have a range of different investment options. Though some may provide higher returns than others, all need to exist in a way that offers you more safety nets as you go on with picking a retirement plan.

Pick the right vesting age
The retirement plan must have the right vesting age depending on when you wish to retire. For example, if you plan to retire earlier, a pension of vesting age 45 or 50 is a better pick than one with a vesting age of 60.