Planning for retirement isn’t something you should leave until your 50s or 60s. Whether you’re just starting your career or already well-established, it’s never too early—or too late—to build a secure financial future. Below is a practical retirement checklist tailored for every stage of life.
1. Define Your Retirement Goals
- What does retirement look like for you? Consider whether you want to travel, downsize your home, start a hobby business, or simply relax.
- Estimate living expenses: Your future budget will determine how much you need to save. Most financial advisors suggest aiming for 70–80% of your pre-retirement income to maintain your lifestyle.
2. Build a Solid Emergency Fund
- Before prioritizing retirement savings, ensure you have 3–6 months’ worth of expenses set aside.
- An emergency fund protects your retirement savings from being drained by unexpected costs like medical bills or car repairs.
3. Start or Maximize Retirement Accounts
- 401(k) or Employer-Sponsored Plans: Take full advantage of employer matching—it’s essentially free money.
- IRA or Roth IRA: Great options if your employer doesn’t offer a plan or you want additional savings.
- Catch-Up Contributions: If you’re 50 or older, the IRS allows extra contributions to retirement accounts.
4. Minimize and Manage Debt
- Pay off high-interest debts (like credit cards) first.
- Aim to enter retirement with minimal or no debt, especially on mortgages and loans, to free up income for living expenses.
5. Diversify Your Investments
- A healthy mix of stocks, bonds, and low-risk investments ensures growth while protecting your portfolio from market fluctuations.
- As you get closer to retirement, consider shifting to lower-risk assets to preserve your capital.
6. Plan for Healthcare
- Understand your Medicare options and potential out-of-pocket costs.
- Consider long-term care insurance or a Health Savings Account (HSA) if you’re eligible.
7. Create or Update Your Estate Plan
- Ensure your will, trusts, and power of attorney are up to date.
- Name beneficiaries on your accounts and consider how you want your assets distributed.
8. Revisit Your Plan Regularly
- Life changes—marriage, kids, a career shift—can alter your retirement outlook.
- Review your retirement accounts annually and adjust contributions or investments as needed.
Final Thoughts
Retirement planning is not about age, but about starting where you are and being consistent. By tackling this checklist step by step, you can create a retirement plan that grows with you and provides peace of mind.
For further information and personalized retirement planning, please contact Liz White.
