Retirement Savings: Are You on Track?

Retirement Savings: Are You on Track?

June 12, 2023

Are you on course for retirement? Are you SURE? Because building wealth is a marathon, staying focused for decades can feel daunting and discouraging. Below are some strategies you can use to check in with your retirement savings. 

Retirement marks a significant turning point in our lives, representing the culmination of years of hard work and the beginning of a new chapter. However, ensuring financial security during this phase is paramount. Having a well-planned and carefully managed retirement savings strategy becomes even more crucial for retirees.

Whether you are already retired or approaching retirement, there is always time and time to assess your retirement savings and make necessary adjustments. In this blog, we will delve into the critical aspects of retirement savings and provide valuable insights to help you evaluate whether you are on track to achieve your financial goals. Join us as we explore the steps you can take to secure your financial future and enjoy a comfortable retirement.

Determine Your Retirement Goals

Before diving into the assessment of your retirement savings, it is crucial to have a clear understanding of your retirement goals. By identifying your retirement goals, you will understand the financial resources required to achieve them. Take the time to envision your desired lifestyle during retirement. Consider the activities you want to engage in, whether pursuing hobbies, traveling, or spending quality time with loved ones. Think about any philanthropic endeavors you may wish to support during retirement.

Additionally, factors in potential healthcare expenses tend to increase as we age. Based on a recent study, it has been found that the average retiree should anticipate spending approximately $295,000 on healthcare expenses throughout their retirement years.

Once you fully grasp your retirement goals, it’s time to evaluate your current financial situation. Take stock of your overall net worth by considering your assets and liabilities. This assessment will provide a snapshot of your current financial standing, serving as a foundation for evaluating the sufficiency of your retirement savings. A financial advisor can also assist you in doing a deep dive into your finances. 

Analyze Your Retirement Income Sources

It's estimated 77% of Americans have a retirement plan in place, but they don’t have enough saved to fund their post-retirement life at the same level as their working years. It’s crucial to take a deep look at your assets to avoid falling into a pitfall. It's necessary to take a comprehensive look at your retirement income, including Social Security benefits, pensions, investment income, and other sources.

By analyzing your retirement portfolio, you can assess their performance and determine if any adjustments are necessary. Consider consulting with a financial advisor with a background in retirement planning. They can help you analyze the allocation of your assets and suggest potential modifications to ensure a balanced and diversified portfolio. Taking a comprehensive approach to your investments will provide stability and the potential for growth to support your retirement goals.

Evaluate Your Retirement Savings

Once you have clearly understood your retirement goals and thoroughly assessed your current financial situation, the next crucial step is to conduct a comprehensive evaluation of your retirement savings. This evaluation will be vital in determining whether you are on track to meet your desired financial objectives during retirement.

To begin this evaluation, comparing your current retirement savings to the projected amount you will need when you retire is essential. This involves considering various factors that can significantly impact your finances in the long run. One critical factor to consider is inflation. Over time, the value of money decreases due to inflation, reducing its purchasing power. Therefore, it is essential to account for the potential impact of inflation on your savings when assessing your progress toward your retirement goals.

Additionally, it is vital to recognize that the value of your investments can be subject to market fluctuations. Financial markets are dynamic and can experience ups and downs, affecting your retirement savings' growth and overall value. When evaluating your progress towards your retirement goals, it is prudent to consider the potential impact of market volatility and ensure that your investment strategy is aligned with your risk tolerance and long-term objectives. Remember, regular monitoring and adjustment of your retirement savings strategy are essential to stay on track and secure a financially stable retirement.

Strategies to Boost Retirement Savings

Implementing effective strategies can make a significant difference in further enhancing your retirement savings. Consider the following approaches to boost your financial readiness for retirement:

  • Maximize Contributions: Take full advantage of retirement accounts like 401(k)s, IRAs, and Roth IRAs. Contribute the maximum allowable amount each year to benefit from tax advantages and compound interest over time.
  • Diversify Your Investments: Review your investment portfolio and ensure it is appropriately diversified to balance risk and potential returns. Consider consulting with a financial advisor to create an investment strategy aligned with your retirement goals. 
  • Explore Tax-Efficient Strategies: Wealthy retirees can benefit from tax-efficient techniques, such as Roth conversions, charitable giving, and estate planning. Consult with your Fiduciary financial advisor to help optimize your tax situation in retirement.

By incorporating these strategies into your retirement planning, you can enhance the growth of your savings and increase the likelihood of achieving your desired financial goals.

Regularly Review and Adjust

Retirement savings is an ongoing process that requires regular reviews and adjustments. It is not a one-time exercise but a dynamic endeavor that should be reassessed periodically. Life circumstances can change unexpectedly, and your retirement savings strategy must adapt to accommodate these changes. To ensure you stay on track toward your retirement goals, conducting annual reviews with a trusted financial advisor is highly recommended.

Annual reviews provide an opportunity to evaluate your progress, reassess your financial situation, and make any necessary adjustments to your retirement savings plan. By partnering with a knowledgeable financial advisor, you can benefit from their knowledge and guidance in navigating the complexities of retirement planning.

During these reviews, your financial advisor will analyze your current savings, investment performance, and projected retirement needs. They will help you gauge whether you are on track to meet your goals or if adjustments need to be made. Life events like divorce or unexpected expenses may impact your retirement savings strategy. Regular reviews allow you to address these changes proactively and make any necessary modifications to your savings plan.

Seek Professional Guidance

Collaborating with a Fiduciary Advisor holds the utmost importance regarding retirement planning. By partnering with a Fiduciary Advisor, you can streamline the entire process and ensure your retirement plan is comprehensive and well-structured. At Agemy Financial Strategies, our Fiduciary Advisors provide invaluable assistance in developing a retirement income plan that encompasses crucial factors, such as:

  • Retirement Planning
  • Estate planning
  • Wealth management
  • Long-term care planning
  • Lifestyle Management 

Our dedicated advisors are committed to working closely with you to devise the most effective strategies for minimizing taxes during your retirement years. We understand the complexities involved in retirement income planning and strive to create a reliable income stream that can withstand market fluctuations, ultimately enabling you to enjoy your desired retirement lifestyle. With our personalized guidance, you can confidently navigate the intricacies of retirement planning, knowing that your financial future is in capable hands.

Final Thoughts

Planning for retirement and ensuring a secure financial future requires careful consideration, evaluation, and adjustment. Let our Fiduciary Advisors help you streamline the retirement planning process and benefit from their assistance so you can enjoy your golden years.

With the guidance of the Agemy team and a proactive approach to managing your retirement savings, you can confidently face the future and enjoy the retirement you envision. Contact us today to set up your complimentary consultation.