TriVita Article: Are You Retirement-Ready?

Planning is the name of the game

Planning to retire soon, or a distant someday? If you’re discouraged about the prospects of retiring, you’re not alone: Only 18% of workers are very confident about retirement, according to the Employee Benefit Research Institute.

With all the economic gloom-and-doom you hear these days, no wonder so many people feel uneasy. Your best bet? Make sure you have a solid retirement plan – starting today.

calculate your retirement savings

The first step is to calculate your retirement savings. Ask yourself these questions:

• How much do I have?
• How much will I need to live comfortably? (Be sure to include healthcare costs)
• How much time do I have to create a nice nest egg?
• Where will the money come from?
• Social Security (go to ssa.gov for an online benefits calculator)
• Pension(s)
• Investments

The Employee Benefit Research Institute survey found that when people calculated their retirement savings, it had a strong effect on their behavior: 44% changed their retirement planning strategy and 59% started saving and/or investing more.

work longer

Many people of retirement age are finding that they must work longer than they had originally expected. Sometimes working a few extra years can make a huge difference when it comes to retirement funds. If you have to continue working, there are some steps you can take to maximize your money:

• Contribute the maximum amount to Individual Retirement Accounts (IRAs)
• Contribute the maximum amount to your employer-retirement plan (if you’re no longer working, you can roll over your 401(k) to an IRA)
• Try to keep at least three months’ expenses in a savings or similar account.

Seek expert advice

When it comes to financial planning, most of us could use some expert advice. And because life expectancy keeps increasing, seniors are finding themselves retired much longer than previous generations. This means the retirement plans of yesterday won’t work for today – or tomorrow.

Be sure you’re prepared for this extended phase of life by consulting a financial planner (check credentials before hiring anyone). He or she will be able to assess your specific situation and offer the best suggestions to fit your needs.

Whether you plan your own retirement strategy or seek expert advice, the important thing is to plan. Take steps today so you’ll be retirement ready tomorrow.

Source: TriVita VitaJournal January 2009 pg 30.