Are you close to retiring? Financial security in retirement doesn’t just happen. It takes planning, commitment—and money. Unfortunately, only about half of Americans have calculated how much they need to save for retirement (Department of Labor). And the closer you are to retiring, the more you need to have a plan in place.
Retirement planning involves setting goals and developing strategies to help protect your financial future. The earlier you start, the better. But if you’re nearing retirement and haven’t started yet, don’t worry—it’s never too late.
First step: Determine what kind of retirement you want
Retirement looks different for everyone. Do you want to fully leave the workforce, work part-time, or take a sabbatical between jobs and continue working? Consider your ideal lifestyle and financial needs.
Second step: Build your plan
- Decide on what age you want to retire. This will help you determine if you need to save more to reach your goals.
- Set realistic spending expectations. Many aim for 70–80% of their pre-retirement income, but this can vary. Consider the longevity of your portfolio to determine how much you can withdraw each year. With longer life expectancies, you’ll want to ensure your savings lasts throughout retirement.
- Factor in health care expenses. Medical costs are often one of the biggest financial challenges in retirement. While exact needs are hard to predict, plan for how you’ll cover both acute and long-term care expenses once you’re no longer working.
Third step: Maximize late-career opportunities
Your late 50s and early 60s are often peak earning years, making it a great time to boost your retirement savings. Take advantage of catch-up contributions—those 50 and older can contribute an extra $1,000 to an IRA or $7,500 to a 403(b) or 457 plan in 2024. (Learn more about contribution limits.)
Keep a close eye on your asset allocations. With less time to recover from potential losses, it’s important to assess the level of risk you’re comfortable with.
Finally, focus on eliminating debt and assessing your retirement income sources to be fully prepared for when you choose to retire.
Final step: Get help
Planning for retirement is not a simple process. Many things need to be taken into consideration. It’s OK to feel overwhelmed or to have questions.
That’s why it’s great to have a partner you can trust to help you with your financial planning. As a participant in Member Benefits’ programs, you have access to our financial advisory services, which can help you refine your strategies as retirement approaches. We also offer a free program called yourINCOME PATH to manage your required minimum distributions, and provide various online resources as well.
Contact us for support. We’re here to help you.
P. S. Pick up some smart strategies for a secure retirement.