March 28, 2022
The road to retirement is different for everyone. To make a smooth transition from your career to enjoy the next phase of life, planning for your lifestyle and needs ahead of time is important.
Since the average American spends 20 years of their life in retirement, it is important to start preparing as soon as possible. To calculate the cost of living during retirement, you must consider your needs in the future and what lifestyle you want to maintain. If your future includes a partner and dependents, do you have a budget to support their extra expenses? Are you prepared for unexpected expenses along the way with an emergency fund?
Even if you carry debt into retirement, you can use your financial game plan to ensure a comfortable future. Consider paying down debt while you still have the financial flexibility and income to do so before retirement. To help with long-term saving in the meantime, check to see if you are covered by your employer’s 401k or savings plan and enroll if it will benefit your investment strategy.
Thankfully, you are not alone in this process and there are many free resources at your disposal. Social Security benefits are a great way to help secure income. On average, benefits can cover up to 40% of pre-retirement income. Visit the Social Security Administration’s website to calculate how much money you can expect to receive. Visit the Employee Benefits Security Administration’s website for more trusted resources.
For more financial resources to plan for the life you want, visit your local Citizens First Bank in person or online. Our experienced team can help find the right strategy to build retirement savings.