Saving for Retirement

Did you know that many experts believe you'll need close to 80% of your pre-retirement income to maintain your current standard of living?  There are steps to help make the process of saving for retirement more manageable …

Step 1 – Develop your goal by figuring out the monthly spending amount you'll likely need in retirement

Step 2 – List the different sources of income that you know you'll have

Step 3 – Figure out how much more you'll need to save to reach your goal

(You can use the “Retirement Calculator” for help figuring out Step 3.)

Don’t forget to answer the following questions:

• Is a pension available to you? How much will you possibly receive each month?
• Can you contribute to an employer sponsored retirement savings plan? How much do you think you'll accumulate at retirement age?
• Will you contribute to a tax-deferred savings plan like an IRA? How much do you think you’ll accumulate at retirement age?
• How much do you think any Social Security benefits will be?
  (You can use the benefit calculators at Social Security Online to come up with an estimate of your benefits.)

Tip 2 – Consider contributing raises - you lived without them before, maybe you can continue to do so

Tip 3 – Use automatic contributions through your paycheck, if possible

Tip 4 – Take full advantage of your employer’s match

Tip 5 – Keep things simple

Everyone’s retirement picture will look a bit different. What’s important is that you begin to get a sense of what yours might look like by considering where your money will come from and the lifestyle you plan to lead. Contact us to help you develop a plan or use the chart below to create an idea of what retirement might look like for you.

Learning about how to plan for retirement doesn’t have to feel like learning advanced math. The basic plans are easier to understand than you may think. In addition to Social Security and Pension Plans, these are the essentials of some of the most widely used retirement accounts:

For a more in-depth look at retirement plans, check out the Retirement Planning Guide.