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Planning for the Future | 06/12/20
Retirement is one of the life events we look forward to the most — each day becomes about what we want to do instead of what we have to do. It’s supposed to be the best part of our lives. However, in order to enjoy these years to the fullest, we need to have the appropriate amount in savings.
According to a recent study, only two-thirds of baby boomers feel confident in their current retirement savings. If you believe you’re in the other third, we’ve listed a few tips below about how to save for retirement.
To start saving for retirement quickly, find out if your company offers a 401(k) benefit — even better if they have an employer match. An employer match is an excellent option to take advantage of because it’s effectively “free money.” For example, if your employer offers to match 100% up to 3% and 50% up to 5%, that means when you contribute 5% of your paycheck to your 401(k), your company will match it with 4%. That can mean a significant impact in your yearly savings.
While your 401(k) can do a lot, it still may not feel like enough. If you want to further your savings, open an independent retirement account (IRA). Depending on your financial situation, a financial advisor can help you choose between a Traditional or Roth IRA. As you’re setting up your retirement accounts, automate your savings. Automating means that the money will come directly out of your paycheck, so you don’t have to think about it or budget separately for it.
To extend your savings, consider extending your career. While you may be eager to start your retirement, maxing out your 401(k) for even three more years can make a big difference in the long run. With that in mind, lengthening your career years also means delaying Social Security, making this decision doubly beneficial. For every year you delay your Social Security benefits, they increase by 8% for life.
Lastly, if you haven’t been contributing to your retirement savings as much as you should or even at all, today is the best day to start. Small amounts add up to substantial savings later on due to compound interest. Then set a goal or adjust your old one. Many people put money away without knowing exactly how much they’ll need to have the retirement of their dreams. If you don’t know what your goal should be, speak to a financial advisor about your current and possible future expenses so they can direct you down the correct path.
To help make your golden years your best years, The Moorings at Lewes has experienced sales counselors readily available to help you with research and option evaluation. During your personal consultation, we’ll walk through your goals, budget, preferences and any concerns you may have to help you find a plan that suits your needs.
To learn more about retirement finances, you can download our FREE guide, Protect Your Financial Future: Financing Your Retirement at Springpoint. You can also contact us to speak with one of our sales counselors at your convenience to see just how affordable a vibrant retirement can be.