Everyone wants to live longer lives, but many times they do not take into consideration that a longer life may not be an enjoyable one if you are not well prepared to enter the later stages of life. There are many things to consider when you begin retirement planning, but the two main concerns of most pre-retirees are physical and financial health. Studies show that both of these are equally important to your happiness. While most everyone agrees that physical and mental fitness is critical to living longer, more than two-thirds of Americans consider themselves to be underfunded to meet their retirement goals.
Studies show that the earlier people start planning for their retirement, the more likely they will be to have accumulated enough wealth to retire comfortably. Currently, individual retirement accounts in the United States have restrictions that state their owner cannot withdraw funds without a penalty until you are 59 and a half years old. Also, if your money is in a traditional IRA account, you will have to claim it as ordinary income on your taxes so withdrawals while still earning an income can bump you into a higher tax bracket. Conversely, a Roth IRA uses funds already taxed, so there are no additional taxes when you withdraw these funds.