Retirement Planning Options

Retirement Plan Recommendations by Age

Retirement Planning Options If You’re in Your 20’s:

• Take advantage of employer-sponsored retirement plans, such as 401(k) or similar plans, if they are available.
• Start saving for retirement as early as possible, even if it’s just a small amount. The power of compound interest will help your savings grow over time.
• Consider setting up an Individual Retirement Account (IRA).
• Start to build an emergency fund and pay off any high-interest debt.

Retirement Planning Options If You’re in Your 30’s:

• Continue to save for retirement through employer-sponsored plans and IRAs.
• Increase your retirement savings as your income grows.
• Have 6 months of living expenses saved in case of emergency or loss of income.
• Review your investment portfolio and make sure it is diversified and appropriate for your risk tolerance and goals.
• Consider buying a home, but be mindful of the long-term financial commitment.
• Review your insurance coverage, including life, health, and disability insurance, to make sure you have adequate protection.
• Consider long-term care insurance to protect your future savings and assets.

Retirement Planning Options If You’re in Your 40’s:

• Continue to save for retirement, focusing on maxing out your employer-sponsored plans and IRAs.
• Review your insurance coverage, including life, health, and disability insurance, to make sure you have adequate protection.
• Have 6 months of living expenses saved in case of emergency or loss of income.
• Create an estate plan to ensure your wishes are followed if you become incapacitated or pass away
• Start thinking about how you will generate retirement income from your insurance, savings and investments.
• Consider long-term care insurance to protect your savings and assets.

Retirement Planning Options If You’re In Your 50’s:

• Continue to save for retirement, focusing on maxing out your employer-sponsored plans and IRAs.
• Have 6 months of living expenses saved in case of emergency or loss of income.
• Review your investment portfolio and make sure it is still appropriate for your risk tolerance and goals.
• Consider working with a financial advisor to create a retirement income plan.
• If you haven’t already, create an estate plan to ensure your wishes are followed if you become incapacitated or pass away.
• Review your Social Security options and consider when you want to start taking benefits.
• Consider long-term care insurance to protect your savings and assets.
• Set up an annuity for lifetime retirement income so you don’t outlive your money.

Retirement Planning Options If You’re in Your 60’s:

• Review your investment portfolio and make sure it is still appropriate for your risk tolerance and goals.
• Have 6 months of living expenses saved in case of emergency or loss of income.
• Consider downsizing your home or other assets to generate retirement income.
• Review your estate plan and make any necessary updates.
• Consider long-term care insurance to protect your savings and assets.
• Set up an annuity for lifetime retirement income so you don’t outlive your money.

Retirement Planning Options If You’re in Your 70’s and Beyond:

• Review your investment portfolio and make sure it is still appropriate for your risk tolerance and goals.
• Review your estate plan and make any necessary updates.
• Have 6 months of living expenses saved in case of emergency or loss of income.
• Consider long-term care insurance to protect your savings and assets.
• Set up an annuity for lifetime retirement income so you don’t outlive your money.
• Prepare for the distribution of your assets to your beneficiaries.

The most important factor in each decade is the continuity of the retirement plan, and reviewing the plan as your life changes. Consider consulting a financial advisor, estate planning attorney, and insurance professional to help create a plan tailored to your specific needs and goals.