Do You Need to Play Catch-Up with Your Retirement Goals?


Do You Need to Play Catch-Up with Your Retirement Goals?

Posted by RDW Financial Group
9 months ago | October 9, 2017

Most of us know that we need to prepare for retirement, but often various life events get in the way throughout our 30s, 40s, or even 50s. Many of us find ourselves playing catch-up in the home stretch of our careers. According to the Employee Benefit Research Institute, only 2 in 10 workers say they feel “very confident” about their retirement plans. The rest of us are worried about whether we will save enough for retirement, or even be able to retire at all.

The good news is that the Institute estimates about 80 percent of us are on a good track, and should have about 80 percent of the financial resources we need in retirement. That’s not too far off target! So, your odds are good for a secure retirement, but you might need to take the following actions to close the gap.

Set a definite goal. Have you actually used a retirement calculator to determine your financial needs? Only about half of people have, and the rest are working with an arbitrary savings goal. We can help you set a target amount to save for your future.

Take advantage of employer matches. If your employer offers matching retirement funds up to a certain limit, try to at least meet that savings limit each year. You don’t want to turn down free money.

Make catch-up contributions. Really, you should be maxing out your retirement plan contributions, especially toward the end of your career. Plus, you can make additional catch-up contributions to your retirement fund once you reach age 50. Currently you can stash an additional $6,000 per year in a 401(k), on the same tax-deferred status you normally enjoy.

Assess insurance needs. Because you can’t predict all of your income needs with absolute certainty, various forms of insurance can help mitigate unexpected emergencies in retirement. For example, the cost of long term care can seriously impact your income, but that’s why we have long-term care insurance to help us manage that expense.

And remember… Don’t borrow from your retirement fund. Resist this temptation, and seek another way to cover life’s emergencies. You cannot make up for lost time, particularly toward the end of your career.

Meet with us regularly. We can help you establish a savings goal, anticipate future financial needs, and set a target date for retirement.

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