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Planning for Retirement at All Ages

Posted at 1:29 PM, Jul 29, 2020

According to a study conducted by Northwestern Mutual, 8 of 10 Americans are worried about their retirement savings with 1 in 5 Americans having no savings at all.

While these statistics are worrying, Cyprus Credit Union has some great steps that all of us can take, regardless of age, to help get your retirement savings on track.

As soon as you start working, you should start some type of retirement savings. Many employers offer some type of 401k program, but you can also look to a financial institution and open an Individual Retirement Account (IRA). Start building a solid credit history (your future self will thank you) and have a plan in place to pay off outstanding debt.

Start contributing more towards your retirement accounts anytime you receive a raise. Plan for the future by creating emergency savings for use in the event of unexpected unemployment or emergency. If and when you`re ready, buy a home.

At this point in your life, try to maximize the contributions you are making towards your retirement accounts. It may also be a good point to convert to a Roth account. Reach out to a professional who will be able to help you make the best decisions regarding your finances.

Once you reach the age of 50, you can start making `catch-up` contributions. This means you can add extra money to your retirement accounts. Make a focused effort on getting as much debt as possible paid off so you don`t need to use your savings in retirement.

Start planning your post-retirement budget. Remember that you will most likely be living on a fixed income and may need to make some modifications in your lifestyle to accommodate this change. Keep taking advantage of `catch-up` contributions as you approach retirement. Don`t forget to take a look as your estate plan during this planning as well.

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