The 50s are crunch time for saving for retirement. If you set a retirement savings target but have been neglecting it, you need to dust it off for a careful review.
“You should be looking at your plan periodically, at least every three years,” says retired CFP professional Dick Bellmer, a past president of the National Association of Personal Financial Advisors.
Once you’ve reacquainted yourself with the financial destination you want to reach, take these steps in your remaining pre-retirement years to make sure you get there.
1. Set realistic goals
First item for consideration: your savings and investments thus far. Hopefully, you’ve been stashing away money consistently, making maximum contributions to 401(k) plans and IRAs, as well as other accounts.
id=”top-funnel-content-top”>How much is enough? That depends on your lifestyle and expenses, potential medical bills and the kind of support you’ll have from, say, a pension plan and Social Security. As you review your savings goals, be careful not to set the bar too low. According to Fidelity Investments, investing professionals recommend that you reach retirement with savings of at least 10 times your last full year’s worth of income from work.
2. Call in the experts
It may be a good idea to seek professional guidance to ensure you’re on the right track and setting realistic goals.
The Employee Benefits Research Institute, in its 2018 Retirement Confidence Survey, found that workers who have a financial adviser are more likely to be satisfied with their workplace retirement plan than workers without an adviser.
The survey also found that workers with an adviser were more likely to say they will roll their workplace savings into an IRA at retirement.
For many, hiring a financial adviser is the best thing they could do to help themselves. Numbers and financial planning are tedious and complicated to some people.