Retirement on the horizon? Follow these 3 tips – ABC15 Arizona in Phoenix
As you near retirement, the financial strategies you’ve followed must move from educated guesswork to reality. For example, will you have enough money to travel, enjoy hobbies, or spoil grandchildren?
Additionally, after retirement, will you still need to earn money with a part-time job, or do you intend to stop working for good?
Whatever your plans, it’s important to have a solid grasp on your financial situation and to make necessary adjustments. To help, here are three tips to ensure you get the retirement you want.
Calculate what you need to retire
Because retirement dreams vary, the amount you’ll need to save may be different from other retirees. Fortunately, a retirement calculator can give a general idea of what you need, and working with a financial planner can help ensure you get to live those dreams.
Locally, Saturn Wealth financial planners can help with its RING system:
“Saturn Wealth’s RING Retirement System helps our clients create a comprehensive plan they can be confident in,” according to the wealth management company.
Whether you’ve worked with a financial planner before or it’s your first time, you will have the chance to make a plan that works for you and to meet regularly, so you can update it throughout all the changes life can bring.
Determine your Social Security strategy
In addition to your other savings, the money you’ve been contributing to Social Security throughout your career will come to fruition in retirement. However, there are some intricacies that can make a big difference to how much you can withdraw.
If possible, you may want to wait to use Social Security money. You can withdraw as early as age 62, but every year that you wait will increase your monthly benefit, with an 8% increase if you wait until age 70, according to the Social Security Administration.
Choosing the right time will depend on what you want from retirement. For example, nearly a third of people 65-69 worked at least part-time in 2017, according to the Bureau of Labor Statistics. If you don’t want to work at all, you can plan to rely on your other investments until you’re ready to draw on the benefit.
Double-down on saving
As you plan on your own and with a professional, you can work to increase the amount you save. This could include re-evaluating your mortgage to determine if you can pay off your house sooner. If you have adult children who you help financially, you may need to discuss making changes.
As for retirement accounts, if you’re 50 or older, 401(k) accounts and Individual Retirement Accounts have a “catch up” option that allows for extra contributions beyond the standard amounts. The 401(k) catch-up contribution limit for 2022 is $6,500, with a total annual contribution limit of $20,500, according to Investopedia. The IRA catch-up allows for an additional $1,000, for a total contribution limit of $7,000. Those amounts may go up each year, so you can add even more.
Get the retirement you want by scheduling a no-obligation visit with a financial planner at saturnwealth.com.
“Investment advisory services made available through AE Wealth Management, LLC (AEWM). AEWM and Saturn are not affiliated companies.”