No matter how well you've prepared, life has a way of throwing curveballs. Sometimes, those curveballs can affect your retirement plans. The good news is, it's possible to catch up to your goals and achieve the dream of a happy retirement!
Here are a few steps to take when retirement planning in a changing world:
In times of change, it's natural to feel uncertain about taking risks. However, short-term worry doesn't have to derail your long-term plan for retirement. If you can, continuing to contribute to your 401(k) or IRA can help you stay on track with your goals. If you need to pause your contributions for a while, consider saving what you can in a high-yield savings account or Money Market account. This way, you'll have funds set aside when you feel comfortable investing again.
Stretch your retirement savings
If you're nearing retirement and worried about meeting your expenses, you may need to adjust your spending and saving habits.
Here are a few ways to stretch your retirement dollars if you're facing a shortfall:
- Downsize to a less expensive home, apartment or condo. Or, consider refinancing your mortgage.
- Consider consolidating high-interest rate credit card balances to a low-interest rate card.
- If you have two vehicles but only need one, consider selling it to free up funds for retirement.
- Reduce discretionary spending, such as dining out, subscription services or clothing purchases.
- Ask insurance, cable, cell phone and internet providers about potential discounts or try to negotiate a lower rate.
- Rethink your retirement lifestyle. Working a few extra years or taking up a “side hustle" can help you earn extra income for retirement.
It's important to reevaluate your retirement preparedness on an ongoing basis. Using a retirement calculator can help you get an idea of how well you've prepared and what you can do today to improve your outlook tomorrow.
Talk to a professional
Planning for retirement can feel overwhelming, especially in unpredictable times. If you have questions, Wright-Patt Credit Union (WPCU) is here to help!
The experienced CFS* Financial Advisors on WPCU's Retirement Solutions team, available through CUSO Financial Services, L.P. (“CFS"), will discuss your retirement goals with you and help you create a personalized plan for a happy retirement. Contact us today to set up a complimentary, no-obligation appointment.