Are you saving enough for retirement? For many people, the answer is no. Fifty-one percent of American workers who have a retirement plan have less than $50,000 in savings and investments (excluding the value of their primary residence or defined benefit plans)1.
It’s hard to predict exactly how much money you’ll need during your retirement years, especially if retirement is a long way off. But if you keep waiting to save more, one day retirement will be right around the corner and you might not be prepared. To help ensure you’ll be retirement ready when the time comes, consider the following questions.
Where Will Your Income Come From?
Your retirement plan savings, other savings and investments, Social Security, or some combination of these probably will provide your retirement income. Reviewing all potential income sources is a good first step in assessing whether you’ll have enough money to support your lifestyle during retirement. And remember that over many years, even low inflation can take a toll on the purchasing power of your savings.
How Long Will Your Retirement Last?
Americans are living longer. According to the latest data, the average life expectancy of all Americans at age 65 is 19.3 years (17.9 years for males and 20.5 years for females)2. And at age 75, Americans can expect to live another 12.2 years. These figures suggest that you should accumulate enough savings to fund a retirement that could last for many years.
Do You Have an Investment Strategy?
Don’t let market volatility stop you from investing for your retirement. While your investments may experience short-term fluctuations in value, sticking with a well-thought-out strategy can help you ride out any bumpy markets on the way to reaching your retirement goal. Make sure your strategy balances the potential long-term returns of your investment mix with your individual tolerance for risk.
It’s never too late to prepare for your retirement. For more insight on increasing your retirement plan contributions, contact a Lumin Financial advisor.
Disclosure: Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific investment, or investment strategy. Investments involve risk and are not guaranteed. Information has been gathered from sources believed to be reliable, but cannot be represented as accurate or complete. Before investing, you should consult your investment, tax, or legal advisor.
1 2015 Retirement Confidence Survey, Employee Benefit Research Institute Issue Brief, No. 413, April 2015
2 Health, United States, 2014, U.S. Department of Health and Human Services, May 2015