It was recently reported that 31% of adults say they aren’t sure if they will have enough saved for retirement, perpetuating an increasingly familiar pattern of concern and worry over financial futures. Bankers Life is here to support and prepare you for what is to come. We have compiled various stages of life and line items to consider when it comes to retirement savings strategies. Walk with us through different ages and stages of retirement planning to set yourself up for financial success.
Ages and Stages of Retirement Planning
20s:
This is the very first phase in a retirement journey. In your 20s, thinking about retirement savings and walking through how you’d like to save is a huge win. Financial professionals will recommend charting your course and creating an initial plan with the resources that are available to you. They will suggest targets like aiming to save 10% of gross salary. Do some research and figure out which type of retirement vehicle meets your financial goals. Investing earlier can set you up for success through compound interest and set the stage for a good path to financial progress.
30s:
As your 30s approach, the focus is more on scalability. Experts suggest choosing your preferred savings vehicle and then steadily increasing retirement savings. Your 30s are a great time to carry out a sustainable cadence of contribution to maximize savings. To get the most out of this stage of retirement planning, many try to avoid traps and pitfalls like cashing out retirement savings during a job change or borrowing on a 401(k).
40s:
Your 40s present a new set of challenges. Funds are required in many areas of your life for future and present needs. College planning can enter the mix and lifestyle creep can edge into your designated retirement contributions. Find a way to balance these factors so that you are able to enjoy the now while preparing for the future. Sometimes savers even choose automation to ensure retirement savings is prioritized in their financial plan. At this stage, investing wisely at an appropriate risk tolerance could be beneficial long term.
50s:
Those in their 50s are paying close attention to their retirement balances, thinking about the next phase of their life, retirement. At this phase, many are beginning to estimate their retirement income and finding more ways to increase their savings balance. Some consider downsizing and taking advantage of catch-up contributions to maximize savings.
60s:
In your 60s, it can be beneficial to consider the effect of inflation on your projected retirement income as well as social security. Ensure you understand how your retirement income will hold up against inflation in the years to come as well as how social security will be drawn and when. A skilled financial advisor could help walk with you through those elements to ensure future financial success given these multiple factors.
Lastly, while retirement is generally thought of as a finite transition from full-time work, phased retirement is an option for those who would like to make the shift more intentionally. Phased retirement looks like reducing full-time hours to part-time or switching to another part-time job – even working for yourself. This allows you to slowly make the change financially and mentally to a new normal.
Whether you are just beginning your retirement journey, or nearing your golden years, you always have choices and options at your fingertips. Don’t let fear of the future keep you paralyzed. Take action and prepare for the next phase to come.
We’re here for you!
Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.
The information provided by Bankers Life Securities, Inc. and Bankers Life Advisory Services, Inc. (“we,” “us,” or “our”) is for general informational purposes only. All information in the article is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of information in the article.
Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc. Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).
Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA).
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