These days, retirement looks nothing like it did generations ago. This means that retirement planning has evolved as well. Long gone are the days of guaranteed pensions and health insurance for life. With growing health consciousness and longer life expectancies, your retirement dollars have to stretch farther. In a recent poll, 58% of workers age 60 and older said that they are delaying retirement. The number one reason cited? They simply can’t afford it. A little planning now can make a huge difference later.
Here are some things to consider as you begin planning your retirement.
Firstly, you need to determine exactly how much it is you need to save. The Department of Labor estimates you’ll need to replace 70 to 90 percent of your pre-retirement income for every year of retirement, so that’a a good place to start. Of course, this is just a rough estimate. There are a variety of factors to consider, including your life expectancy, planned lifestyle and any medical issues that may arise. As with anything else in life, you need to account for the unexpected. Easier said than done, however there are many formulas to help you calculate.
After determining your target number, you will need to assess your current progress and figure out what needs to be adjusted to hit that goal. The major elements of your retirement portfolio is comprised of savings and investments, pensions, and Social Security benefits. After taking into account your current retirement assets, a projection can be determined.
The next step is to make an action plan to close the gap. Upping annual retirement contributions and cutting back on a few things are great first steps in preparing for this transition. You don’t want to postpone, and strategic planning will make for a timely retirement later on, when you can still enjoy life!
Our retirement financial specialists have the planning resources you need and strategies that can help you achieve your post-retirement dreams. Contact us here or call 512-479-6819, and together we can come up with a retirement savings strategy that will enable you to live the life you want to live. Don’t wait, there is no better time that now to start planning for your future.