COVID-19 has impacted everyone in many ways, especially when it comes to retirement planning. It may seem overwhelming to consider retiring after navigating a pandemic, however, it is important to act now to ensure you will enjoy a comfortable lifestyle during retirement. You owe it to yourself to continue working toward growing your assets and boosting your financial wellness. The good news is that your retirement goals are within reach if you plan accordingly. Let’s get started!
Develop Your Retirement Plan
If you do not have a retirement plan in place it’s never too late to consider creating one to help you to achieve your goals. This helpful guide offers tips to get started and explains how to build your net worth using compound interest to your advantage.
Create a Vision for the Future
Retirement planning requires you to imagine your future lifestyle. Begin the process by asking yourself these important questions:
- At what age do you want to retire?
- What healthcare and living arrangements do you anticipate needing?
- Do you have any special circumstances that need to be considered?
- Have you discussed your plans with a partner or family members?
Determine Your Lifestyle Options
When you retire, you may want to travel more often or take up a new hobby. Maybe you’ll decide to volunteer part-time to get out of the house. You may wish to slow down the pace during retirement spending time growing a garden or relaxing with your family and friends. Use your lifestyle goals to develop an attainable retirement vision with the expectation that you may need to revise it over time.
Budget Now to Enjoy Later
Wherever your plans may lead, you should take inventory now to ensure that you are able to support yourself throughout your retired years. Determine whether your goals are realistic and aligned with your level of anticipated retirement savings. If you aren’t sure how much money you will need in retirement you can access this helpful calculator to get started.
Weigh Your Options
Maximizing your contributions, whenever possible, may also improve your chances of having sufficient funds available when you are ready to retire. Recent IRS changes have increased contribution limits to 401(k), 403(b) and 457 accounts, which means that you may be able to save more to increase your retirement funds.
You should also consider other factors when deciding how much to contribute to retirement. Whether you are new to saving, or planning an increase in contributions, it’s best to strike a balance between saving for retirement, paying off current debt, and making plans for long term care and insurance.
Create an Emergency Fund
One of the most effective ways to keep your retirement plans on track is to be prepared for unexpected expenses that may come your way. If the past few years have taught us anything, it’s that unpredictable events can change our lives and create challenges we never anticipated. It would be unfortunate to have to withdraw funds from your retirement accounts to meet basic expenses after a sudden job loss or to cover the cost of a home repair.
You can alleviate this added stress by creating an emergency fund if you do not already have one in place. The Consumer Financial Protection Bureau has written an informative guide that gives tips and strategies for setting up a fund that will provide you with added financial security now and in the future.
Monitor and Revise Your Retirement Plan
Once you have a plan in place, it’s wise to review it periodically to determine if your investments are continuing to grow at a pace that will help you meet your goals. You may need to adjust future lifestyle expectations or delay retirement in order to achieve them. If you find that you need to get back on track or make adjustments, there are a few important things to consider to help sort through your priorities.
Stay the Course
It is very common for those who are nearing retirement age to be anxious about the prospect of leaving the workforce. When you imagine entering retirement it may leave you feeling stressed about whether you will have enough saved to provide for yourself and your loved ones.
Try to keep it all in perspective. Throughout your adult life you may have financed a home or real estate, paid college tuitions or made short term investments. Initially, you may have felt uncertain about your ability to take on the burden of these large purchases.
As you gained experience and developed confidence, you likely realized that you were up for the challenge. Retirement living will also require some adjustments. You may be pleasantly surprised at how well you manage the process. Having a solid plan in place is the first step toward entering retirement with the confidence needed to achieve your goals.
We’re here for you
Bankers Life Securities is here for you! We understand the stresses and strains of the retirement planning process. Our financial representatives can answer questions, review portfolios and help create financial plans. Call us to get started (844) 553-9083.
This material provides general information about the described insurance product(s) for educational purposes only. This is not intended as investment advice or to recommend the insurance product(s).
Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc. and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.
Bankers Life is the marketing brand of affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Conseco Life Insurance Company (BCLIC), Colonial Penn Life Insurance 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). BCLIC is authorized to sell insurance in New York.
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