If you are like majority of the Americans, you must not have been saving enough for your retirement as retirees in the US are infamous for not saving enough for their post-retired age. The average age for retirement in the US is 63 and though you may have been nurturing plans of working for a longer period of time, yet your 60s should be the best time for making some of the most vital financial moves. Not saving enough for retirement and not managing your personal finances can lead to debt which in turn can mar your retirement goals. Hence, check out some key personal finance steps that you should take in order to spend a debt-free golden years.

#1: Develop a well-proved strategy for your Social Security

Although Social Security is designed in such a way that it replaces 40% of your pre-retirement income, it pays you to get as much dollars out of the program as is possible. Currently, there is no such rule about when you should claim your Social Security first but the only thing you should know is that the benefits will be based on the total amount which you earned while you were employed. You can count all those benefits entirely unless you reach your complete retirement age. Hence you need to devise a profitable Social Security strategy in order to secure your retired life.

#2: Repay your mortgage liabilities

The less is the amount of debt that you have when you go into retirement, the easier it will be for you to get on with fixed income. Mortgages are big loans and they tend to be a huge source of debt for most people who have them. Therefore once you start aging and you walk one step after another towards retirement, you have to focus on paying off your mortgage loan debt. If you see that working an extra year can give you the option of entering retirement without any mortgage debt, it is definitely a wise step to take.

#3: Devise a budge for retirement

Majority of the retirees require 70-80% of their pre-retirement income in order to cover all their living expenses as soon as they stop working. But you shouldn’t target that much only as there may suddenly arise other health factors like falling ill or getting admitted in the nursing home. Your budget should reflect the kind of expenses that you may have in retirement. You may still eliminate a few of your present costs in retirement like traveling expenses and some other like entertainment as these are some requirements which change after aging.

Apart from retirement planning, another area that people need to focus on is taxes. You either have to seek help of a tax specialist or a tax manager when it comes to taking the right tax decisions. In case you feel you’ve fallen back on your taxes, make sure you seek tax help as tax specialists are all eager to help you with the same.