Do you have enough saved for retirement? Although it's never too late to plan for retirement, the longer you wait, the harder it may become to meet your goal. That's why it's essential to know how prepared you are for a bright financial future.
It's always best to seek professional help from a qualified financial advisor, but in the meantime, here are some tips to help you get started.
Envision your future lifestyle
Whether you will have enough money to support your retirement goals depends a lot on the lifestyle you hope to pursue. Some people are satisfied with simple living. Others want to travel the world and enjoy all the amenities life has to offer. Some retirees continue to work part-time or volunteer because they like to stay active in their communities.
Base your retirement savings goal on your future spending rather than your current income and you're more likely to live the life you want when you retire.
Understand your financial readiness to retire
Next, it's important to determine if you'll have enough to support your desired lifestyle in retirement. A retirement calculator can provide an estimate of how much you'll need to save. If you're worried about your ability to reach your retirement savings goal, you can take steps now to modify your retirement strategy. Some changes to consider:
- Increase your allowable employer or self-employed retirement contributions.
- Pay down debt to save money and increase your savings.
- Cut back on everyday expenses and weed out some of the “nice to haves" from your monthly budget to add more to your retirement nest egg.
- Get a second job to earn extra income. Do something you love, like freelancing or giving private music lessons or tutoring sessions.
- Scale back on your retirement lifestyle expectations.
Saving a little more today can help you secure much more financial flexibility and freedom in the future!
Review your portfolio regularly
Even if you've been investing for years, you should review your retirement investment strategy on a periodic basis. As you get closer to your retirement, it's even more essential to consult with a professional to ensure you're staying on the right track. Working with a professional financial advisor will help you reduce risk while potentially increasing your returns.
You may have an idealistic vision of retirement – doing all of the things that you never seem to have time to do now. But how do you pursue that vision? At Wright-Patt Credit Union, your retirement goals are our passion. Let the CFS* financial advisors and registered representatives on our Retirement Solutions Team, available through CFS*, help you develop a plan that will help put you on your path to success. Learn more today!