Retirement can be an overwhelming ordeal. This is the case regardless of how well you’ve prepared for it. Much like any major transitional period, it can be a lot to process at once. But we can assure you, you don’t want money to be atop your list of concerns when the time comes. That’s where retirement planning comes into play.
Luckily, with friends like FitnessBank, you don’t have to face this next step alone. Take a look at this cheat sheet we’ve generated for you. With this in mind, you’ll be able to walk into retirement knowing that you’re covered.
The biggest concern when it comes to retirement is that many don’t plan for it. Sure, you know it’s coming. But oftentimes, people will let this get away from them. The sooner you start saving for it, the better off you’ll be in the long run.
Even if you’ve put things off for a while, there’s no time to start like the present. Retirement savings are important for more than just vacationing or side projects. They can serve as emergency funds in a time of need or in the event of unexpected setbacks.
So what’s a good amount to put to the side for your retirement plans?
Here’s a great rule of thumb to reference: take your yearly income, and shave off about 20% of it. You’ll want that for every 365 days that you’ll spend post-workforce.
A common misconception is social security will be enough to sustain you post-retirement. In truth, social security payments are fairly minimal compared to the average income. Take a look at the equation we provided above. The amount social security provides pales in comparison to what you will need for the future.
There are some other great steps to take when planning for your retirement. First, consider consulting your employer. Many will afford you the option of a 401k plan. You can earmark a part of your earnings for this purpose. You may even be eligible to have some of the dollar amount matched by your employer.
The beauty here is that you don’t only have to pick one plan. You can even start another account, i.e., a Roth IRA, where you can funnel even more funds. The first option won’t see taxation until the time comes to remove them. The latter comes from income that’s already taxed.
These are just a few of your available options when it comes to retirement planning. We’ll be sure to cover more in future installments, so be sure to come back for those.
Looking to open your next savings or checking account? FitnessBank is here for you. Whether nearing retirement, or far from it. We want you to be able to enjoy the benefits of forming good spending habits. That’s why we incentivize all our clients with banking rewards for practicing healthy habits. Contact us today to learn more.