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4 Important Conversations to Have Before Retirement

​​When you're getting closer to your retirement years, the financial decisions you make now are vitally important. Everyone has a picture of their ideal retirement, and everyone hopes to achieve their retirement dreams. To help ensure you're on the right track for the relaxing retirement you deserve, here are some key conversations to have now:

How much will I need?

Some retirement planning experts recommend saving for a retirement income that's about 70-90% of your current gross monthly income. But the truth is that there's no cut-and-dried formula. It's sometimes better to take a personalized approach based on the way you plan to live your life in retirement.

Factors like your desired retirement lifestyle play a significant role in how much you need to save for retirement. You should also factor in inflation, healthcare and medical expenses, and insurance needs. ​

Using an online retirement calculator can help you understand how much you'll need to save for the life you want to live in retirement.

How long do I need my retirement savings to last?

One common worry people have when planning for retirement is that they will outlive their money. While there's no surefire way to calculate how long your retirement savings need to last over the course of your retirement, it's best to develop a couple of scenarios, shorter and longer, to come up with a range. Based on today's average lifespans, many experts advise saving enough retirement money to last you at least 30 years.

What if I don't have enough?

After adding up your retirement savings, pensions and social security, you may find that you don't have quite enough saved. Don't worry—there's still time to save for a happy retirement, and the best time to start is now.

Here are a few ideas to help you make the most of your retirement savings:

  • Maximize your contributions to IRAs and 401(k) accounts. Shoot for the maximum allowable and take advantage of “catch up" contributions.
  • Start a “side hustle" to bring more income in the door. Take the opportunity to turn a hobby or passion into a source of extra money.
  • Create automatic savings through payroll deductions that go straight into your account. This will help you resist the temptation to spend the money you intended to save.

What will my medical expenses be?
Healthcare can be one of the biggest expenses in retirement. While Medicare can pay for some healthcare spending in retirement, you should also expect some out-of-pocket costs. As you prepare for retirement, be sure to assess your insurance needs, including life, disability, and long-term care coverage.

Purchasing long-term care insurance can help fill gaps in Medicare coverage and offer more peace of mind to you and your family as you get older.

Final thoughts

These are just a few of the critical decisions you will need to ​make on your way to achieving your dream retirement. Luckily, you don’t have to navigate these decisions alone. Retirement planning professionals can help you create a plan that works best for you!

The CFS* financial advisors on Wright-Patt Credit Union’s Retirement Solutions team, offered through CFS*, will sit down one-on-one with you to understand your retirement goals and create a plan to reach them. Schedule ​a complimentary, no-obligation meeting to learn more and get started today.

​​​​​​​​*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered brokerdealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Wright-Patt Cr​edit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Before deciding to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to; investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.
CUSO Financial Services, L.P. (CFS) does not provide tax or legal advice. For such guidance, please consult your tax and/or legal advisor.
All information provided through this site is intended to be accurate. However, there may be inaccuracies at times, which will make all commercially reasonable efforts to correct when found. Information provided is intended to assist you in making decisions and does not eliminate the need to discuss your particular circumstances with a qualified professional.
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