With the rising cost of living and medical expenses on the horizon, it’s important to aim for more than just 100% of your current annual income when gauging your retirement goals.
Did you leave a company and have a retirement plan you now need to move? Or looking for ways to keep more of your money at retirement instead of paying taxes to Uncle Sam? There are options!
Five steps to get in the retirement planning mindset
- Envision the future – Write down a vision of your life in retirement. When do you want to retire from your job? Where would you like to live? How will you spend your time? Define a positive vision of the future that you are excited to achieve.
- Think long term – Your retirement may be years away, or just around the corner. Wherever you are, make it a habit to think beyond your immediate financial needs and wants. There may be purchases you are willing to avoid now to bring your retirement dreams closer.
- Make financial discipline easier – Small steps are easier for most people than big leaps. Find small ways to save regularly, including budgeting, cutting unnecessary expenses and ‘paying yourself first’ through a savings account.
- Expect to adapt and change – Review your retirement plan occasionally to make sure it still makes sense. Life happens, and your circumstances and goals may change. Your financial plan can (and should!) adapt with you.
- Seek advice – A financial professional can help you understand your options, including things like annuities or life insurance that can help contribute to a comfortable retirement.
