Grow Your Retirement Part 3: Times Have Changed

We live longer than prior generations. We save less and spend more. The financial impact on future retirees is big. How big?

You and your employer want you to grow into a secure retirement. Your employer's benefit plans are a generous head start. But saving for retirement is a partnership and you need to do your part to insure that your retirement years are without financial worry.

Using a retirement calculator is one step that can help you target what's right for you. It will paint a clearer picture of the realities of retirement savings needed to fund a secure and happy retirement.  Given the data you input, the calculator will show you a yearly record of how your retirement savings will grow until retirement and how long your savings will last once you retire and stop saving. With this information you can decide if you need to save more now.

If you retire today at age 65, you have a 50% chance of living to age 83. Are you prepared to fund all of those retirement years?

Prior generations could consistently agree with these statements. Can you?

• My house will be paid for when I retire.
• My health insurance (and my spouse's) will be paid by my/our employers during retirement.
• I plan to dramatically cut back my discretionary spending at retirement - give up golf, stop traveling, etc.
• If I need it, my kids will help me financially during retirement.
• I expect to inherit resources from others.
• I've been saving steadily all my life.
• I do not/will not have college expenses for my children.
• Social Security will be here for me.
• I have worked for my employer for a very long time and am covered by a defined benefit pension plan.

Do you see some 'no's' in your responses? That means that your life in retirement will differ from that of prior generations and your savings must reflect that.  A calculator will help you understand how far your savings will stretch in retirement - while you still have time to make changes.

Where can I find resources?

Retiring Baby Boomers, coupled with a struggling economy, will combine to keep the topic of ‘successful retirement’ in the news.  Your employer, bank, financial advisor, and the internet all have resources available to help you determine a successful savings plan. 

Take the time to plan now for a bright future!

 

Lisa Pfautz
Markley Actuarial