What you need to know that can make a big difference in your retirement forecast. Average pre-retirement Baby Boomer (Age 50 to 65) has a savings shortfall. What should you be doing to save for your retirement, in your _____? 20’s - Recommended you set aside 15% of your salary for retirement. Contribute to your company’s retirement plan if one is offered. As your salary increases, ramp up percentage of income contribution. The benefits for savers in their 20s are huge.
30’s - It’s time to increase percentage of income contribution to company’s 401k or similar retirement plan. You still have a long time to let your money compound and grow prior to your retirement. Consider funding an IRA account. 40’s - You should be nearing your peak earning years. Strive to max out your contributions to your 401k. This is when college also creeps up on those of us with kids consider to save for your retirement instead of saving for college. There are other ways to pay for college, including having your children pay a portion. There are no second chances on saving for retirement.
50’s -This is our peak earning years, you should still strive to max out your contributions in 401k or similar retirement plan. Ideally, you are doing other saving and investing for retirement. Focus on funding your retirement rather than paying for your kids’ college tuition. You might need to care for aging parents. Take a serious look at your retirement plan, if behind consider cutting spending or plan on working a bit longer. 60’s - If you are behind, it is not too late to salvage your retirement, even into your 60s, might require working a bit longer or even part time into your retirement. Not the time cut back on contributions to your retirement plans. It’s important to carefully time when you claim Social Security.
Brandy Speer, 1.760.845.5550