Retiring baby boomers: Make sure your savings survive your retirement.
Retirement is expensive. The U.S. Department of Labor experts estimate that you will need at least 70% of your preretirement income to maintain your standard of living when you retire. This year, set attainable goals that will allow you to retire comfortably and take charge of your financial future.
Social Security benefits
“Social Security is your first line of defense against outliving your savings,” advises financial expert Emily Brandon of U.S. News: Money, “because these payments will continue the rest of your life and are adjusted for inflation each year.”
Since this is the only guaranteed source of income most retirees have, it’s a good idea to try and increase the amount you receive.
Brandon recommends boosting your Social Security payments by making sure you have at least 35 years of covered earnings, claiming spousal payments and delaying claiming your benefits until age 70.
Retirement savings plan
To enjoy a comfortable retirement, it’s critical to sign up and contribute to a 401(k) or retirement savings plan.
“Find a plan and contribute all you can,” certified financial planner Troy Von Haefen writes. “Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate. If you have more disposable income, you can even set your amount higher. Extra saving now will pay off during retirement.”
Many retirement plans offer the option of taking benefits in a lump sum rather than monthly or periodic payments. But in many instances—such as Northwest’s Rollover IRA— you can let your retirement money sit and grow over time.
Whether you wish to adopt a conservative or aggressive approach, speak to a financial advisor to see which plan works best for you.
Inflation and the type of investments you make now play important roles in how much you’ll have saved for retirement.
“How you save can be just as important as how much you save,” according to the Employee Benefits Security Administration. “Reduce risk and improve return by knowing how your savings or pension plan is invested.”
Learn about your plan’s investment options and ask questions. Put your savings into different types of investments. Financial security and knowledge go hand in hand, so learn how to diversify your financial options.
Have questions about retirement plan management services? Northwest specializes in retirement plan problem solving and can help you meet your retirement financial goals. Contact an investment management professional at (link to personal invest) or 1-877-300-3454 for a no-obligation consultation.
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