July 27, 2022

4 Ways to Prepare for Retirement

Know your priorities before retirement.

Decide on a target age to retire

The first step to creating a successful retirement plan is knowing your timeline. Retiring early definitely has its perks, but will require a larger nest egg. You are technically eligible for Social Security benefits at age 62, but don’t actually qualify for full monthly benefits until a few years later. Most people choose to retire from 66-70. Waiting a few years can also give you some extra time to build up more funds and interest. When determining this age, keep in mind your health, personal circumstances, and funds to make the best plan for your needs.

Estimate your retirement expenses

Once you determine your retirement savings timeline, the next step is calculating how much you will have to budget for your retirement years. But how much should you expect to spend? As you know, there are many fixed and variable expenses required to maintain your lifestyle. Calculate your average monthly fixed and variable expenses (that will continue into your retirement years). After determining the yearly total, multiply that number by the amount of years you will likely rely on these savings. Keep inflation rates in mind when determining your future expenses.

Research the best saving strategy

Citizens First Bank provides a dedicated team with the knowledge to help you decide which retirement account best fits you and your lifestyle. You can learn more about our account options on our website or by visiting a branch in person. Another kind of account you should consider creating is a health savings account, or HSA. This account can provide a way to save contributions and withdrawals without being taxed.

Plan contributions to savings accounts

Retirement planning requires continuous saving over a long period of time. When your retirement date is within 5 to 10 years, and if your budget allows, consider increasing your contributions. This allows you to take advantage of compounding interest while you still can.

Planning your retirement is an integral part of financial freedom in the later years of life. Citizens First Bank is here to guide you through any questions or concerns you may have about saving for retirement. Call or visit your local branch for personalized, expert advice today!