A quick guide to retirement

It may be easy to dream about what life in retirement will be like, but in reality, it’s never too early to start thinking about your financial future. Here are some common questions about planning for retirement.

How much money should I save for retirement?

We recommend saving as much as you can, but you should at least strive to save 10-15% of your pretax income each year. Take a look at your current monthly expenses and calculate if that number will rise, decrease or stay about the same in retirement. Will you travel more once you retire? Will your house be paid off? Come up with an estimation of how much money you’ll need each year and be honest in your calculations regarding the lifestyle that you want to have and how much that will cost. A retirement calculator can be a helpful tool to see if you’re on track.

When should I start saving?

Start saving for retirement as soon as you can. In your 20s is a preferable time to start putting money aside because you probably have started earning a decent paycheck by then. The sooner that you start saving, the more time that your money has to grow.

Where should I put my money for retirement?

IRAs and 401(k)s are the best places to put your retirement money. Your employer may match a portion of your contribution to a retirement plan such as a 401(k).

Should I change my plan as I get older?

Revisit your retirement plan regularly. As life changes, your retirement plan will also be altered. Whether it’s a new baby, health changes or a new job, it will be necessary to take a look at your plan along the way to help ensure that you are prepared for retirement.

When can I retire?

Gather all the pertinent information regarding your retirement such as anticipated retirement expenses, pensions, Social Security, and any other savings that you will draw from once you leave your job. Use a calculator to crunch the numbers to see when you will comfortably be able to retire. About half of Americans retire between the ages of 61 and 65. By age 75, 89% of individuals have left the workforce.  

Where can I get more advice about retirement?

There are a lot of pieces that go into planning for retirement. Consider hiring a financial advisor to help you map out your path to retirement.

 

Content prepared by a third party marketing firm

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.   Any references to protection benefits, safety, security, or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

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The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

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We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. Our firm is not affiliated with the U.S. government or any governmental agency. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Retirement Solutions Group are not affiliated companies.  AW04182822

 

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