Ideally, workers would begin planning for retirement early in their careers, and they would be able to comfortably retire at some point in their 60s. But we don't live in an ideal world, and many of us may have made mistakes or failed to plan for retirement when we were younger. It's very common to worry and wonder whether you will really be ready to retire.
Nothing is guaranteed, of course, but you can follow these three steps to see if you're on the right track toward retirement.
Calculate your projected retirement income. Plug your personal information into a retirement income calculator, such as your age, salary, your rate of savings, and your expected retirement date. You might also enter your expected Social Security benefits.
Assess your retirement income. The retirement calculator will generate a number for you, based upon the income you can expect to receive from investments, pensions, Social Security, and so on. It will be expressed as a percentage of your current income. In most cases, it's a good idea to reach 70 percent of your current income. If your number is at least 70, you're probably on track toward a comfortable retirement. If your number is lower than 70, you might have some work to do.
Adjust your retirement plan. If your outlook isn't so rosy, you will need to make some adjustments to your plan. You could increase your rate of savings, taking advantage of catch-up contributions, or work a few years longer than you expected. You can also consider working part-time in retirement in order to increase your income. Pay down debts before you retire, and make a plan for unexpected expenses such as long term nursing care or out-of-pocket health care expenses.
Work through these steps with a certified financial planner. If you're experiencing significant anxieties about retirement, please call our office at (712) 332-5960 for a complimentary consultation. We can help you find ways to boost your savings, reduce your expenses, or rearrange your financial priorities.
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.