When you think about retirement, does it seem like a distant goal or something that’s approaching quickly? No matter where you are in your career, one thing doesn’t change: retirement planning isn’t just for those nearing retirement. Every stage of your career presents opportunities to build financial security for your future.
Early Career: Building a Strong Foundation
If you’re in your 20s or 30s, retirement may seem decades away, but time is one of your greatest financial advantages. Thanks to compound growth, even small contributions made early in your career have the potential to grow significantly over time.
Benefit-eligible employees are already contributing to either the Optional Retirement Program (ORP) or the Teachers and State Employees’ Retirement System (TSERS) but often additional savings is needed to have enough savings in retirement.
Consider taking advantage of the UNC System 403(b) and 457(b) supplemental plans to increase your savings. Start with an amount that fits your budget and gradually increase your contributions to build healthy savings habits that benefit you for years to come.
Mid-Career: Find Balance and Building Momentum
For employees in their 40s and 50s, retirement planning often competes with other financial responsibilities like a mortgage, college-related expenses, and caring for aging family members. While balancing these priorities can be challenging, this is an important time to evaluate your retirement progress.
Review your current retirement savings, increase your contributions when possible, and check whether your investment strategy still aligns with your goals. Make these adjustments now so even modest increases can improve your retirement readiness.
Nearing Retirement: Turning Savings into a Plan
As retirement approaches, the focus often shifts from accumulating savings to understanding how those savings will support your lifestyle.
Now is the time to estimate your retirement income, review your Social Security Benefits, evaluate healthcare expenses, and understand your retirement distribution plan. Whether you participate in the ORP or TSERS, understanding how your benefits fit into your overall financial picture is essential to making informed decisions.
Retirement Planning is a Journey, Not a Destination
No matter your age or career stage, retirement planning doesn’t have to be overwhelming. The most important step is simply taking action. Whether you’re starting your first retirement account, increasing your contributions, or preparing to transition into retirement, every decision you make today can help shape your financial future. Remember, it’s never too early to start planning and it’s never too late to take steps toward a more secure retirement.
Resources Available to Help You Plan for Retirement
Employees of the UNC System have Financial Consultants available at no-cost through CAPTRUST at Work and TIAA to help employees plan for retirement. To take advantage of this valuable benefit, click here to schedule your appointment with CAPTRUST at Work or to schedule a virtual consultation with TIAA, click here. If you are eligible for retiree health through the North Carolina State Health Plan, additional information is available by clicking here.