When Should You Start Saving for Retirement?
If you are like 56% of Americans, you might not know how much you need to retire and are probably even less sure about when and how to start working towards a retirement goal. You might also be one of the 22% of Americans who have $5k or less in retirement savings, or maybe you’re one of 15% that don’t have any retirement savings at all. The point is, wherever you are in your retirement journey, you certainly are not alone. And while it’s never too late to start saving for retirement, when you start significantly impacts your financial return and retirement strategy. So what factors should you consider when creating a retirement strategy?
WHAT IS YOUR RETIREMENT GOAL?
The first thing to consider when making a plan for retirement is how much you will need annually to maintain your lifestyle as well as your projected life expectancy after retirement. Multiply the annual amount by your life expectancy, and this is what you should plan toward. Don’t forget to include a significant amount for health care costs as this tends to be the leading expense for retired individuals, especially as healthcare costs continue to rise.
Need help figuring out what your goal should be? Check out our retirement fund calculator.
WHERE ARE YOU AT IN REACHING THAT GOAL?
The second factor is how much you currently have in retirement savings (such as an IRA, HSA, or 401(k)), projected growth, and how much you can expect from other income sources (i.e. Social Security).
Need help figuring out where your retirement savings are at? Check out our retirement savings calculator.
WHERE DO YOU GO FROM HERE?
So now that you have a better idea of where you are and where you need to be, where do you go from here? There is no one-size-fits-all number for retirement. Some experts use age to set benchmarks, others use income multipliers to set retirement goals, but at the end of the day, each plan has to consider individual lifestyle, needs, and desires. If you’re ready to start a savings plan that will secure your financial well-being in retirement and considers your unique needs, contact us today to speak with one of our financial experts.
Do you want to learn more about specific retirement savings options? Visit our Waldo State Bank Investment Center or check out our blogs “Leveraging Your HSA for Retirement,” and “What Is An IRA Anyway?”