It’s hard to know if you’re doing enough to save for retirement. Achieving this goal means hitting several moving targets: How much will you need for living expenses? How much will health care cost? How long will you be able to work? How long will you live?
We have less control over these outcomes than we’d like to admit. So rather than worry about an uncertain future, focus on what you can do today, this month and this year.
- Make it automatic. Setting up automatic contributions from your paycheck to your 401(k) or your checking account to your IRA will help you make steady progress toward your retirement goal.
- Go all out if you can. Learn this year’s contribution limits for each retirement account you’re eligible for. Then, divide that amount by your number of annual paychecks. For example, if you’ll be younger than 50 all year, you can put up to $7,000 in an IRA. If you get paid biweekly, divide $7,000 by 26, and $269.23 is how much your automatic contribution should be.
- Be ok with stepping back. Sometimes people lose their jobs, need cancer treatment or have kids. When your income drops, your expenses shoot up or both, don’t beat yourself up if you can’t save as much for retirement. Set a new, realistic goal—maybe it’s to avoid debt so you can ramp up your contributions again when your finances improve.
Our lives are constantly changing, which means our financial plans need regular tune-ups. Do you have questions about how your insurance coverage fits into your plan? We’re here to help anytime.