How to Secure Your Retirement

A comfortable and financially stable retirement is one of the most important goals for many Americans today. However, not many individuals plan for their retirement well during the last decades of employment, making them fall short of achieving their retirement American dream. 

Of the most common dilemmas for individuals is how best they will fund their lifestyle once they get into retirement. According to the Actuaries Longevity Illustrator, a non-smoking person of average health retiring at the age of 65 has at least a 30% chance of living until age 90. However, only seven out of ten workers are confident they have enough saved to live comfortably in retirement, according to a 2021 study by the Employee Benefit Research Institute.

For you to secure your retirement, it could be important to aggressively eliminate debt from your life. It's may also be necessary to save more in your later years prior to retirement than you did when you were younger. That would all be part of a sound retirement plan based on your current assets, investments, income, and savings. 

Here are a few tips to help you secure your retirement:

Begin Serious Planning for Retirement

It is imperative that you get a clear picture of your financial status. Begin by taking stock of where you stand with assets, income, savings, and (most importantly) debt. List all your assets and calculate them against debts and expenses such as a mortgage, insurance, vehicle loans, and more. Having a clear picture of where your finances stand forms the basis of your retirement planning.

Next, consider what you would like your retirement lifestyle to look like and estimate your expected monthly budget. Would you like to maintain the same lifestyle as when you were working? Would you be moving to a new location? Do you have family members to support even in retirement? Do you plan on working part-time during retirement? All these questions and more will help you form a well-balanced budget for retirement.

Finally, decide on when to retire so that you can plan on the savings and debt-reduction steps to take for you to secure your financial wellness in retirement.

Boost Your Retirement Savings

The earlier you begin saving for retirement the better your chances of securing the retirement you want. However, many individuals don't or didn't plan that far ahead, and so they may find themselves in their 50s or 60s being unprepared for retirement.

The key is to maximize your contributions to retirement plans in your younger years, such as traditional IRAs (where you receive a tax deduction against your contribution year income taxes), Roth IRAs (where you are able to withdraw earning tax-free during retirement years), and 401(k)s or other employer-sponsored retirement plans (where your employer may also contribute to your retirement).

For most individuals that did not save enough in their earlier years, this is the time to play catch up. Luckily, the federal government has put laws in place to help such individuals maximize their retirement savings. If you're 50 or older, one of the best ways to catch up and boost your retirement savings is by contributing more to tax-advantaged plans such as IRAs (Individual retirement accounts) and workplace plans such as a 401(k). The federal laws allow individuals aged 50 or older to contribute more to these accounts. In 2024, individuals can contribute an extra $1,000 to IRAs/Roth IRAs, and an extra $7,500 to 401(k)s.

Cut Your Expenses

How can you save more? One key way is to spend less. If your income isn't changing and you want to save and invest more for your retirement, then you can help your future more now by spending less. If you've found yourself in your 50s and 60s being unprepared for retirement, cutting down on your expenses may be unavoidable. Proper budgeting will help you cut spending on certain things and you can put that money into a retirement savings account instead.

Clear Your Debts

Clearing your debts before getting into retirement is equally important. However, this is one of the most common challenges facing many retirees. Housing is often the largest portion of debt for individuals, including those approaching retirement, but car prices have inflated in recent years as well, contributing to a high debt level for many individuals. The less debt you can carry with you into retirement, the easier it will be to cover your expenses with a likely very reduced income.

If you're really looking forward to enjoying a comfortable and secure retirement dream, you have to plan for your future days now to help you secure your retirement. If you're not sure of the right steps to plan for your financial future in retirement and find ways to save more, cut expenses, and reduce debt, you would benefit from a professional financial planner to help you secure your retirement. To get started today, go ahead and...