Planning for retirement can be stressful, even under the best situations. Trying to make sense of all the information can seem like an impossible and daunting task – especially if you are trying to do it on your own.
The CFS* financial advisors and registered representatives on Wright-Patt Credit Union’s Retirement Solutions Team, available through CFS,* are here to sit down with you side-by-side to help you:
- Better understand your unique situation, goals and aspirations.
- Set achievable short- and long-term goals for a happy retirement.
- Develop a plan to help you cut through the clutter and stay on your path to success.
To learn more about how WPCU’s Retirement Solutions team can help you, stop in one of our neighborhood Member Centers, give us a call at (800) 762-0047 or click here.
There are many myths out there that can make planning for retirement seem even more confusing. Here are some of the most common myths, along with the truths that bust them.
Myth #1 Once I retire, I won’t be spending as much money.
Some people wind up spending less money during their retirement, but some people spend just as much – if not more. The trick is that you never really know how much you’re going to need to spend in retirement until you get there.
Having your mortgage and other loans paid off before you retire helps, but even then, you’ve got insurance, taxes, maintenance, medical expenses and a host of other bills that keep coming when you stop working. And relaxing during your retirement – that comes with a cost, too.
If you’re planning to live on 70 or 80 percent of your current income after you stop working, you might be limiting your quality of life before you’ve even retired.
Myth #2 Social Security Will Meet My Retirement Needs
Many people don’t save much while they’re working because they expect Social Security to cover their needs once they retire. That’s what it’s there for, right?
That’s not exactly the case. Even when Social Security was first introduced, it wasn’t supposed to be your entire retirement plan. It was designed to be more of a back-up, and that’s more true than ever today.
The news has been full of stories about the future of Social Security and whether or not the government will have to cut benefits, raise age requirements or otherwise change the program to make sure it remains sustainable.
If you’re relying on Social Security as your whole retirement plan, any one of those changes could have drastic effects on your quality of life.
Myth #3 Planning for retirement is impossible.
Sure, it’s a little more difficult than adding two plus two, but determining your needs for retirement isn’t impossible.
Start by figuring out what kind of assets you’ll likely have when you stop working. Then, determine how much income they will produce, accounting for a 4% annual drawdown and inflation. Balance that with your expected expenses. That gives you a rough idea of how much you’ll need to plan on saving.
Download our entire Myth Busters brochure.
Save Better. Borrow Smarter. Learn a Lot!