January 18, 2023
Will Your Retirement Savings Be Enough?
Review these retirement planning strategies.
Account for extra expenses.
When you retire, your savings should last you as long as you need. However, this isn’t always attainable. There are quite a few factors that dictate how long your retirement savings will last. For example, if you’re hoping to travel during retirement or if you have medical expenses, your savings will need to be more substantial. It’s important to consider where you might be retiring and if your budget can withstand a potential change in expenses for that specific location.
Review your budget and adjust as needed.
Most advisors recommend starting with a 4% fund withdrawal rate during the first few years of retirement. Depending on your personal expenses, this amount can theoretically last for about 30 years. To estimate how much you will be needing each year in retirement, you can divide your monthly expenses by 4%. Our team at Citizens First Bank can help you find ways to save and budget now so you can retire comfortably in the future.
Consider additional sources of income.
During retirement, it’s often common for people to depend on additional sources of income outside of retirement savings. This extra income can be anything from added benefits from the government to a part-time job. If you are able, a part-time job can further your income and savings, and it can also keep you busy. Remember that before you apply, be mindful and consider the advantages and disadvantages.
Stay healthy and active.
Finally, make sure to prioritize your physical health, mental health, and overall well-being. When you retire, it’s important to keep your health up to minimize expensive healthcare and medical costs. Maintaining your health and staying physically active can save you a great deal of money and stress in the long run. To avoid debt in the future, plan for medical expenses with long-term care insurance or start a health savings account.
Our experienced financial team will help you plan accordingly for retirement. Citizens First Bank offers various saving plans and services to help you succeed in accomplishing your goals. Feel free to stop in, give us a call or click here to learn more.