With the arrival of the holidays, thoughts are turned to more sentimental issues such as spending time with loved ones and how we can make a better future for us all. If you’re near retirement, the holidays are a particularly good time to focus on meaningful ways to spend your golden years.
Are you looking for tips to help you find purpose and the financial freedom you need to live the retirement of your dreams? From keeping fit and healthy to making the mental adjustment, how you wish to spend all your newfound free time is unique to you.
Planning your retirement is an important step in your financial journey. Whether you are planning to retire in 10 years or 1 year, you should consider taking specific steps to be sure you have everything you need for a comfortable retirement.
At CKS Summit Group we want to help you strategize your plan of action during this crucial financial time in order for you to achieve a happy and enjoyable retirement. Here’s our top three tips on how to make your retirement meaningful.
Planning (as early on as possible) is your saving grace when it comes to enjoying life in retirement. But most Americans fall short on being prepared for their golden years. (DOL.gov)
- Only half of Americans have calculated how much they need to save for retirement.
- In 2020, more than a quarter of private industry workers with access to a defined contribution plan (such as a 401(k)) did not participate.
- The average American spends roughly 20 years in retirement.
Putting money away for retirement is a habit we can and should all live with. Even if you are far away from retirement age, you should get started with saving early and know your retirement needs. The sooner you start saving, the more time your money has to grow. Make saving for your retirement is a priority.
You will need between 70 and 90 percent of your pre-retirement income in order to maintain your standard of living when you stop working. Think about diversifying your portfolio and way to grow your investments!
It is important that you find purpose in your work-free time when you retire. When it comes to changing your daily routine and habits, managing your personal life can be challenging.
Having something new to aim for will help you embrace your new life as a retiree. Looking at the future with different eyes, and accepting this change will prevent you from sinking into slothfulness.
Find your sense of purpose and define your new goals! Stay focused and dedicated. Think about all the advantages of retirement: you will have more time to do what you love and maybe realize those dreams you never had the chance to previously achieve.
One of the best ways to stay happy in retirement is to stay healthy. And staying healthy, according to research by both Johns Hopkins and the Mayo Clinic, means paying attention to the body-mind connection through exercise, diet, and meditation.
Getting your steps in, ramping up your healthy eating and practicing mindful exercises such as meditation will all help you reach your healthy retirement goals.
Here is the most crucial tip of them all: make a solid, realistic written plan! You should focus on creating a timeline, then breaking it down with different components based on your financial goals and needs.
In order to make a successful retirement plan, you should consider:
- Putting money into an Individual Retirement Account (IRA): The annual contribution limit for 2023 is $6,500, or $7,500 if you’re age 50 or older (2019, 2020, 2021, and 2022 is $6,000, or $7,000 if you’re age 50 or older). It is an easy way to grow your savings, and you can automate the process in order to see deducted the preferable amount from your account.
- Check your Social Security benefits: avoid missing out on benefits, you should estimate your benefits with your financial advisor. But remember, you should never rely solely on your Social Security payments. Once you retire, you can generally expect to need anywhere from 70% to 80% of your former income to maintain your standard of living. In 2022, seniors on Social Security received a 5.9% cost-of-living adjustment (COLA) — a boost many recipients were quick to celebrate. But most years, Social Security benefits don’t get such a generous raise. And the only reason they went up so much this year is that inflation has been rampant.
- Discuss with your employer about starting a plan: If you are still in the workforce, your employer should offer you a retirement plan, if they haven’t yet, ask for it! There are many options available so be sure to explore the best options suited to your future financial needs.
Creating your retirement plan isn’t a oen-and-done activity. Once you have made your money, you need to make it grow. That’s where investing comes in. A lot of retirement investing advice involves very specific formulas and strategies. Sometimes, though, it’s helpful for your investment decision-making to take a step back and look at the big picture.
One in three working adults and retirees currently consult with a professional financial advisor, according to a 2022 retirement survey from Employee Benefits Research Institute. Of those who don’t have an advisor today, nearly half said they intend to work with one in the future.
Your financial advisor can help you plan your investment strategy by including expectations for items such as inflation, market declines and health care so you can stay on track. In fact, 84% of those working with a financial advisor said doing so gave them a greater sense of financial comfort during the COVID-19 pandemic.
Retirement can seem a distant horizon, but it is important to set your priorities and financial goals early in order to live the meaningful retirement you deserve.
The good news is that you are not alone. At CKS Summit Group, we can help you analyze your assets and find the right retirement portfolio to match – because examining your financial wellness in advance gives you more time to make any necessary adjustments.
Let’s set up your complimentary strategy session! Contact us here today and let CKS work for you and your retirement goals.