Whether you are planning for retirement or have another long-term goal in mind, the fall is a great time to take stock of your financial well-being and see where you are on the path toward achieving your financial goals.
According to the Federal Reserve’s latest “Report on the Economic Well-Being of U.S. Households in 2019,” 60% of Americans either did not know if they were on track or felt unsure if they were on track with their retirement savings.
The Federal Reserve’s most recent data also shows that a majority, 57% of all retirees, use a pension or retirement plan as a source of income.
Here are a few tips to help Kentuckians of all ages plan for a stronger future:
1. Get started as soon as you can
If you have a child or grandchild with a part-time or full-time job, encourage them to find out if their employer offers a 401(k) matching program or other retirement account. They may be surprised to learn they can benefit from their employer matching their own contributions and begin a life-long habit of saving. It’s never too early — or too late — to get started.
2. Take advantage of free resources
While how much you’ll need to save for retirement varies, you can get a better idea and start mapping a plan of action using the free resources your local financial institution offers. For example, interactive retirement calculators can help you compare individual retirement account options and determine how long retirement savings will last. The Social Security Administration also offers benefit estimates on its official website, ssa.gov.
3. Prioritize and balance your goals
If you have children, you may need to focus on multiple long-term goals at once to ensure you’re saving enough for your own golden years while helping your children with college costs or other expenses. It can be a balancing act, so it’s important that you prioritize must-haves and weigh your options to reduce other expenses.
4. Get a professional opinion
Your local credit union or bank may offer additional financial planning resources, including a no-cost consultation with a licensed investment professional, to help you balance your goals and create a plan. A trusted financial partner can help you understand the different investment options available to you and develop a plan that can help you reach your retirement and other long-term goals.
Saving for the future may seem daunting, but taking the first step today can make a huge difference down the road. You may be surprised by how quickly even small changes in your spending habits can add up.
Here’s to a more comfortable retirement and secure financial future.
